Saturday, 5 January 2013

Fantastic 3D, but where do I invest?


I'm a great fan of 3D movies, and have recently taken my family to see 'The Hobbit' and 'The Life of Pi' at our local cinema. I can thoroughly recommend both films.

Over the past year or two I have seen a number of newspaper articles that suggest that the 3D revolution is over hyped. I disagree. Personally, I won't go to the cinema to watch a film that isn't in 3D. I absolutely love the experience, and I'm sure I can't be the only one.

Critics have noted that some 3D movies have not attracted the expected audiences and that consumers are opting for the 2D versions. Sales of 3D TVs have been sluggish. Two simple reasons I'd suggest: cost and content. 3D movies are far more expensive than there 2D version counterparts, and 3D TVs are still expensive with content sparse. The past few years have been exceptional economic times with low consumer confidence, but world growth will eventually gather momentum and, in my opinion, so will the 3D revolution. But where to invest?

A company that has been on my radar for some considerable time is DDD group which describes itself as follows:-

"DDD transforms the visual experience by bringing 3D to the consumer. Its TriDef(TM) 3D solutions convert 2D to 3D automatically, and enable delivery to 3D TVs, PCs and mobile devices. Leading brands including Intel, Samsung, LG Electronics and Sony license these solutions. Over 20 million TriDef 3D products have been shipped by DDD's licensees worldwide. DDD's Yabazam! label delivers 3D everywhere with its online content portal and Smart TV apps."

DDD is a growing company with a terrific client list (see above) and market leading technology, it's just turned a maiden profit and has a solid balance sheet and gross margins currently running at 96%. Revenues were up 74% in the 6 months to June at $4m with EPS at 0.06c. So why haven't I bought any?

With a current market cap. of £30m it's a bit too expensive for my tastes at the moment. However, should a suitable opportunity arise then I'll be a keen buyer.

Please note I can also be found on twitter at :-

https://twitter.com/michae1mouse

My recommended reads are:-

http://astore.amazon.co.uk/httpmichae1mb-21




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