This is from another forum. I have the posters permission to repost.
I would expect further QTK networks to be rolled out into Countries that I would label as developing Countries with a need for asset protection per increased per capita wealth creation. These have not had a lot invested into their telecommunications networks and are ripe for the picking.
Thailand, Indonesia,Hungary,Poland,Russia,Chile, Argentina and the list goes on.
Re establishment of the UK network would be very profitable and should/most likely is being looked at.
At some past point in time the QTK designated World rights were split between the UK and Australian operations. To the best of my knowledge QTK Australia now have legal entitlement to the whole World.
Guy's, I have 2 QTK radio modems, I have pulled one apart and done a costing on components and I will say that they cost around $30 USD ea in 10,000 lots.
There is a lot of smarts in the design and it would be near impossible to copy, even if the hardware was copied the sotware/code/io is in a custom manufactured IC that is then proprietry coded by QTK.
There is no way that the system could be duplicated.
Another hurdle is the system is covered by Worldwide Patents.
I would say that each QTK base station would cost around $20,00 each, and when you realise that the base station has a range of 150 +Kilometers the QTK system does not need many bases stations to cover a large City. You only need 3 base stations for position triangulation.
To cover Melbourne or Sydney the base station cost is under $100,000 , to expand into the outer fringes would cost an extra 60 to 80 K
The QTK figures FY do not include revenues from the SAS alarm system, they do not include revenues from China, the revenues were from 3 networks in Australia , Melbourne Sydney and Brisbane. These are growing at a good rate as car jackings continue to rise. The home alarm systems operate on the same network so there is no cost to setup. The customer buys the box and is locked into QTK for years to come.
The bigger Alarm companies can see this, I have a contact who works for Chubb fire and security and he was awe struck in the Worlwide potential. A few years back I saw the same potential in a little Australian company named RDF that manufactured Red light cameras and speed detectors, its share price was under 30 cents when I could see the potential in this company. A couple of years later the share price was over $3.00 a share but even now is over $2.00
QTK has far greater earnings potential than RDF as what QTK earn they keep, even in a 50/50 fee arrangement they are way ahead of RDF earnings potential.
I have a very strong feeling that in the next 24 months one of the big Alarm companies makes a take over offer on QTK. Why? The QTK system is cheaper than GSM and the customer is locked into the network and this stops customers going to other Alarm companies looking for a better deal.
To understand this company you will need to read all the ASX announcements from the time MP took the company out of administration, you really need to look at the company structure on a before and after basis.
You most likely would come to the same conclusion as myself that the old management did not have a clue what they were doing.
The new team are very very clever and extremely well connected, they have turned this around in a very short period using a Corporate time scale.
I would point out that in my biased opinion that QTK is going to be a star performer from now on. I expect many many more announcements going forward.