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DIAAF Shares Hitting Their Critical Mass

They say great investments take time to mature, but the truth of the matter is it can happen in the proverbial blink of an eye.  For proof, look no further than Diamant Art Corporation (DIAAF). Its wholly-owned subsidiary T&R International has taken retailing technology to unprecedented heights in just the last six months, and this year is looking like it's packed with major growth for the company. Investors looking for a great opportunity in 2011 need to put DIAAF on their radar, as its story is nothing short of incredible. Of course, investors shouldn't tarry too long... the stock's starting to draw a crowd.
 

Overview

To investors it's Diamant Art Corporation, but to its customers it's 'Think & React', or T&R for short. Regardless of the name, the company has been providing product management and security solutions since it acquired T&R International BV's technology, products, and contracts back in July.

T&R, in simplest terms, makes companies more efficient, more profitable, and more secure via its wide array of software and hardware. While the power of its product has so far been focused on retailing (where it can have the biggest immediate impact), every industry from museums to casinos to construction can benefit from what Think & React has to offer.

The recent unveiling of the company's anti-theft technology is a great illustration of how DIAAF can build value for shareholders.

One of the biggest headaches most retailers are forced to deal with is stolen merchandise being returned for a cash or credit refund. The store may not have any record of the transaction, but it can't prove it didn't happen either. As such, the retailer generally ends up conceding.

The Think & React solution is simple, but brilliant. At each store's point of sale, items are scanned into the T&R database as they're purchased, and voila - the transaction is recorded. If a stolen item comes back to the store for a refund and there's no recorded sale, the buck stops there... literally.

The monetary upside for T&R International is two-fold.

First, the device - recently put into its production stage - is projected to sell at $1000 each. The company has slated production of 250,000 units for sale in the United States. That's a potential $250 million in sales for this young enterprise. After the U.S. units are done, another 250,000 units will follow for sale in Europe and Asia; the same revenue potential applies.

The second revenue stream this ant-theft technology offers to DIAAF investors is the small transaction fee paid to T&R for each item scanned. While it's only $0.04 to $0.07 per transaction, or an estimated $10 per day per cash register, there are an awful lot of cash registers across the nation... and across the world, for that matter.

Get the idea? The software and hardware package cuts losses for the retailers, and drives revenue for Diamant Art Corporation. That's just the beginning though.
 

Lots of Opportunity

Recording retail transactions are only the beginning of how T&R International can help a business increase sales and decrease expenses. In fact, any aspect of any business can likely be improved by one of the company's software and hardware packages. Not that it's an extensive list, but here's a sampling of other areas Think & React helps make its customers more profitable.

  • People Management - Shops and stores need adequate staffing at their busiest times, but need minimal staffing at down times. T&R's people-management software can pinpoint foot traffic tendencies, where those shoppers are going in the store, how long they browse, and even how long they wait to check-out.
  • Energy Management - Large facilities like railway stations, convention centers, and airports tend to keep all the lights on at all times, and usually run heat and/or air conditioning in all areas, even if there are no people present in all those areas. By turning off those power-consuming functions in a zone when nobody's around (and turning them on again when people return), up to a 20% reduction in electricity can be achieved.
  • RFID Employee Management - Some facilities are simply too large to personally manage with visual supervision and face-to-face coaching at all times... areas like oil fields, military complexes, airports, and construction sites. An RFIF (radio frequency identification) tag allows an organization to immediately know where all of its employees are at any given time, and what each one is doing at that time.
And there are more solutions T&R can offer, including custom-built solutions to meet a company-specific need. And, all of these software packages are scalable as well as modular, giving potential clients even more flexibility.

More important to DIAAF investors, the value and marketability of these services is clear - Think and React simply helps organizations perform better at almost every imaginable metric.
 

Don't Wait

While Diamant Art shares began trading in the middle of 2010, and saw thin trading and little net movement between September and December of last year, we've seen a complete 180 degree turnaround in the way DIAAF shares have been behaving. Over the last couple of weeks, the stock's been aggressively rallying, and volume has been swelling.

What gives? It's simple... the word's getting out about this incredible growth opportunity.

After the acquisition of T&R International BV's software and technology last July, we saw the occasional news release from the company explaining its progress with the new venture. As is often the case with a new business though, it takes time to develop sales momentum, gather partners, and start delivering the product.

It was only a few days ago, however, that the combination of sales growth, investor awareness, and clearly defined opportunities all came together in the right way to finally reach that all-important critical mass where Diamant Art shares actually start reflecting their true underlying value.

In other words, investors are starting to 'get it', and they like it. That's why the stock's more than tripled in value since January 6th, and that's why volume swelled on the way up.

While normally such a move would be a tough act to follow, in the case of DIAAF, we can take the budding momentum at face value and assume this is likely to be only the beginning of its upside. The opportunity is still far greater than the current price reflects.

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May 12, 2012

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