To OTC Journal Members:
 
 

T&R International Hits the Ground Running in 2011 and Is Just Getting Started

Ever seen a stock get turned on like a light switch, and rally more than 200% in just a few days? They're rare, but they do exist. Diamant Art Corporation (DIAAF) - thanks to incredible growth of its T&R International subsidiary- is one of them. DIAAF more than tripled in value between the end of 2010 and late last week on news of rapid expansion of its specialty software business.

Here's the thing... the DIAAF light switch is still on. The progress that drove the stock this far is still building momentum, and the news that got the market so excited is still coming. Investors looking for a serious growth opportunity to kickoff the new year don't need to look any further than this incredible story.
 

In the Beginning...

The birth of the Diamant Art Corporation as we know it today wasn't all that long ago. It began with the July acquisition of the software division of T&R International BV. The deal granted Diamant a nice collection of technology, marketable products, distribution rights, and even some sales contracts. Moreover, it led to the creation of a new wholly-owned subsidiary of Diamant called T&R International.

This new venture would be able to offer a wide array of technology solutions that help companies make more money, and reduce expenses. Not that this is an exhaustive list, but here's an example of the value T&R can bring to organizations; the bigger the company or facility, the bigger the benefit.

• Energy Management - Heating, cooling, or lighting an unoccupied area leads to wasted electricity. T&R's sensors and software can turn power on and off in certain areas as merited.
• RFID Employee Management - Large facilities with lots of employees (say, like an oilfield) can be difficult to supervise. An RFID system lets managers know where remote employees are, and what they're doing.
• Work Shift Planning - Retailers want heavier staffing at busier times, and lighter staffing at down times. T&R can generate traffic flow schedules, and even pinpoint certain departments or locations within a store that draw the biggest crowd.

Yet, the market shrugged off the news of the acquisition, unsure that the T&R (short for 'Think and React') acquisition would do anything for the value of DIAAF. Big mistake.
 

Going Strong Right Out of the Gate

Though investors may not have realized the potential of T&R International's technology then, the brilliant minds of Diamant Art knew exactly what kind of opportunity was ahead. And, they went out and capitalized on it.

The first big one was a partnership with Motorola, announced in August. The duo will design and install wireless (RFID) tracking hardware for a hospital system with 180 locations. The same hospital group also opted to install T&R International's energy saving software. Other projects with this partnership include a workforce management system for an East Coast hotel chain, another for an oilfield in the Emirates, and an energy management system for a factory in China.

Later in the same month, DIAAF owners scored again, as T&R International partnered with a company in China that would start to market its products there. In fact, that co-venture kicked off with a contract to install the company's RFID and security control software at one of China's major nanotechnology sites.

Similar news flowed through the end of the year, further underscoring one key idea... the demand for this software is far greater than most would have ever guessed. Yet, T&R has only scratched the surface.
 

The Math More Than Makes Sense

While the news of T&R's growth was always compelling, it wasn't really until the latter part of last year and early this year - when the fireworks for DIAAF started - that the market could really start putting some numbers together.

The October 22^nd announcement was a big help to be sure. It was then that Diamant Art Corporation specified $11.1 million worth of business was being negotiated by one of its partners, Zevi Noyman LTD. The opportunities were spread across several potential Israeli customers, and considering Diamant's market cap was only a couple million bucks at the time, represented a relative windfall.

It was in January, however, when the numbers really started to get interesting.

T&R International has been on the cutting edge of technology for years... even before it was acquired by Diamant. As of January 19^th though, the company took retail loss-prevention to a whole new level. The introduction of its point-of-sale scanning system will allow merchants to avoid giving back cash refunds for stolen merchandise. While that's good news for the stores and their investors, that's not even the part that potential or current DIAAF owners care about.

No, the exciting part about this new merchandise tagging system for DIAAF investors is the fact that it's a $250 million opportunity, at least.

Yes, you read that right... T&R International has slated production of 250,000 of these highly marketable point-of-sale systems, and intends to sell them at $1000 each. After the first 250,000 are produced for sale in the Unites States, the next 250,000 are planned for sale in Europe in Asia at the same price.

Oh, and let’s not forget that T&R will also collect a few cents for each item scanned by the transaction-tagging devices. That’s expected to generate $10 in revenue per day, per terminal.

It's not like this is the only nine figure pool T&R International could jump into either. In fact, the company's already tiptoed into one of the other lucrative arenas.

That hospital system with 180 locations that's already getting its equipment? That's a drop in the bucket compared to the 7500 hospitals in the United States alone. T&R International conservatively anticipates 1500 of these hospital will be installing similar hardware and software within three years. At an average installation price of $130,000 each, gross revenues from T&R's systems could exceed $195 million.

And, these two opportunities - totaling more than $400 million in their infancy - only look at hospitals and cash register locations. The opportunities waiting all over the world's malls, factories, office building, train stations, other retail venues, and hotels are just as big.

Now compare that to the $6.6 million market cap of DIAAF. Crazy, huh?

It's one of those opportunities the market has overlooked simply because it didn't have all the information. But, now that the numbers are coming into the light, investors are starting to take notice of simply because the stock's current price doesn't even come close to reflecting the true opportunity here.

The tripling in price over the last three weeks is just the beginning.