Investorfile Blog

Category (49)
Novra Technologies Inc. TSXV: NVI (1)
Posera Ltd. TSX: PAY (2)
Gatekeeper Systems Inc. TSXV: GSI (1)
AirIQ TSXV: IQ (4)
Intouch Insight Ltd.TSXV: INX (2)
Intrinsyc Technologies Corp. TSX: ITC (7)
Quorum Info. Tech. Inc. TSXV: QIS (6)
Sangoma Technologies Corp. TSXV: STC (8)
Avante Logixx Inc. TSXV: XX (6)
The Caldwell Partners Int. Inc. TSX: CWL (8)
Questor Technology TSXV: QST (8)
Titan Logix Corp. TSXV: TLA (8)
Ergoresearch Ltd. (2)
RDM Corp. (12)
IWG Tech. (4)
Wanted Tech. (7)
DDS Wireless International Inc. (6)
Radiant Communications (4)
Galvanic Applied Sciences Inc. (3)
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
DDS Wireless is set for a rebound year
Posted by: Gerry Wimmer

TOP IDEAS: Recent trends, stock buy-back and big contract awards are amongst the catalysts for DDS Wireless International (TSX: DD) stock in 2013.

Given the most recent financial results, we feel very positively about our prediction #5 that we made at the end of last year: "DDS Wireless International - Our Top Ideas stock which is positioned to have a rebound year in 2013," (See: Investorfile has a view for 2013).

Here is why.

For most of 2012, DDS Wireless (TSX: DD -$2.02) faced many unexpected headwinds; slower markets in Europe, unfavourable exchange rates (both the Euro and US dollar versus the Canadian dollar), a customer base in transition, revised product offerings and the infancy of marketing programs for new vertical markets within the USA.

But in Q4, the headwinds subsided and results were outstanding.

DDS Wireless reported its highest level of quarterly EBITDA in the Company's history, $3.2 million (27% of revenues) and $0.16 per share in earnings in Q4 of 2012. Whereas the first three quarters in 2012 turned out to be a period of transition and repositioning, said the Company, Q4 saw it return to key historical performance trends like 50% gross margins with revenues of $11.9 million for the quarter.

DDS Wireless provides application software and hardware for transit routing, scheduling, real-time dispatching, vehicle location and tracking software, and communication infrastructure as well as in-vehicle wireless devices. The Company supports its transportation industry customers worldwide, which consist mostly of Transit and Taxi fleet operators. Recently DDS Wireless has experienced strong growth for sales in new market verticals such as Limousines, Airport Shuttles and Work Fleets.

The Company labelled 2012 as a "difficult” year even though it still generated substantial profits. But for 2013, DDS Wireless announced that the Company is on a short list to win two very significant contracts from new customers. The potential contract awards could be the catalysts to boost the Company's revenue growth outlook this year from "modest” to "significant” and propel its stock price to new highs.

DDS Wireless revenues are about 60% recurring from SaaS (Software-as-a-Service) type revenue streams. The Company reported that it has built a strong sales backlog for 2013 of $27 million. Q1 is generally the Company's softest quarter for sales, the fourth quarter usually the strongest.

DDS Wireless was the Investorfile blog's first name for our Top Ideas list – Small Cap Value Stocks (See: DDS Wireless: Buy for value, ride the growth). To date, the stock price appreciation has been more modest than our other Top Ideas, only returning about 20% (excluding dividends), but we feel strongly that this is about to change. Therefore we are still very comfortable with our initial stated value proposition that shares of DDS Wireless should be accumulated up to a level of $3.25 per share for small cap investors.

The Company continues to maintain a very strong balance sheet with $10 million in cash and marketable securities and no debt.

Two more positives: A share buyback was announced by the Company for 675,000 shares up to a stock price of $2.75. Last year DDS Wireless began paying its shareholders a $0.02 per share quarterly dividend.

The Company has only 13.8 million shares outstanding.

DDS Wireless' website address is

Author's Ownership Position TSX: DD - Yes

Read Disclaimer:

This article is for informational purposes only. This article is based on the author's independent analysis and judgment and does not guarantee the information's accuracy or completeness. The information contained in this article is subject to change without notice, and the author assumes no responsibility to update the information contained in this article. The information contained within this article should not be construed as offering of investment advice. Those seeking direct investment advice, should consult a qualified, registered, investment professional. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. is not engaged in an investor relations agreement with DDS Wireless International Inc. nor has it received any compensation from DDS Wireless International Inc. for the preparation or distribution of this article.

The author of this article has acquired and may trade shares of DDS Wireless International Inc. through open market transactions and for investment purposes only.



E-mail: (will not be published)
Comment: (500 Char. Max)
Verification Code
Code Image - Please contact webmaster if you have problems seeing this image code If you can't read the word, click here to load a new word
Enter the Word exactly as it is shown in the box above:

FREE. Sign up for blog post alerts

Latest Tweets

Latest Blog Comments

Hi Gerry, Just a quick note to thank you for the info about the companies profiled on your page. I was a bit ''''late'''' to the Sangoma party but am doing very nicely with it (even if not >500%). I am considering whether to put some money in some of the other companies-- Answer: My top picks for 2018 are still ITC, STC and PAY. Gerry Wimmer