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DecisionPoint Systems (OTCBB:DNPI) 10M(MarketCap)

When I first heard about RFID I was working at a NY Hedge Fund and the founder was so excited with the prospects for the industry that he was bubbling. This was 2004 and we looked at it, at that time, as a way to leverage our expertise as Semi-Conductor Analysts... we wanted to figure out how RFID would weave its way thru the logistics business and revolutionize it.

 It was our job to identify the company’s who would eventually monetize this new logistics tool. That was 6 years ago and today I stumbled on a small company in our niche (OTCBB:DNPI) that has some great case studies - and today - that vision from 2004 seems real. My first thought was how I would never again lose a golf club because a thin RFID strip would beep my smart phone identifying my 9-Iron sitting greenside or in the caddy shack for safe retrieval.

 In the case study I reviewed DecisionPoint was tasked with solving the business problem of locating the 93,000 containers for a public company (Nasdaq:MINI) and assist in loss prevention, location and invoicing. 

 I was surprised at the size of the contracts ($5.3 million in this case) which led me to dig a little deeper into the company and where they were going. This really fed back into my initial understanding of how RFID should and would be utilized.  DecisionPoint took my golf club idea and created a unique weather resistant bar code and applied this to all assets; and handheld mobile computers equipped with GPS software and cellular radios using proprietary and third party software and enabled the company to identify and capture asset numbers, secure locations anywhere in the world and capture electronic signatures and proof of delivery. These giant containers were my missing golf clubs and were also assured safe retrieval.

If I we were to Hot-Tub Time Machine back to 2004 my old boss would look at potential revenues and ask me to do more digging into the cap structure and where the bones were buried so we didn’t get  in a trick bag with no exit, but for sure we would have dissected this like a laboratory frog.

I have yet to talk with CEO Nic Tom’s but I want to ask him about all my lost 9-Irons and if he could help me find them. I love looking at the logistic space in 2010 and like the way it surfaces new undervalued opportunities. You will hear more from World Market Media on this space and asking hard questions on upcoming earnings calls.

Stay tuned...below is some info about DNPI

 DecisionPoint Systems, Inc. operates as a data collection systems integrator. It sells and installs mobile devices, software, and related bar coding equipment, as well as provides radio frequency identification solutions (RFID), professional services, and software customization solutions. The company deploys mobile applications for retail stores, warehousing and distribution, manufacturing, transportation and logistics, and field mobility markets. It also provides software for field mobility applications; CASE Tools/Pathfinder, an application development platform; and custom software using Microsoft, .NET framework, and Java. In addition, DecisionPoint Systems offers professional services comprising business consulting, which allows customers to understand the implementation of mobile computing for a particular business process; technical consulting that determines the technology to be used and implemented; and technical development, which includes actual software programming and configuration of the mobile application, as well as interface software for customer’s existing back office systems. Further, the company provides rollout, support, and management services that involve installing a solution into the customer’s computer systems infrastructure and then replicating that implementation out to their various operating locations. Additionally, it offers enterprise wireless and mobile computing hardware, such as handheld and vehicle-mounted ruggedized mobile computers, wireless LAN (Wi-Fi) infrastructure, mesh networking wireless infrastructure, RFID tag readers and related infrastructure, GPS receivers, two-way radios, handheld bar code scanners, and bar code label and RFID tag printers and encoders, as well as bar code and RFID consumables solutions. It serves retail, utility, transportation and logistics, manufacturing, wholesale and distribution, and other commercial markets in the United States. The company is headquartered in Foothill Ranch, California.



Disclosure: no positions