STOCKS FOR 2004
DIVERSIFIED PRODUCTS: DPRI .26/.30
52w H/L .09/.30
14.9m Shares Outstanding, no pref.
What They Do:
Diversified Product Inspections, Inc.
DPI provides independent, unbiased investigations of products in many different areas. We work with the insurance industry to recover funds via subrogation, with manufacturers to improve quality control processes, and with consumers to keep them informed of product awareness and recalls.
Insurance claims in the United States cost hundreds of millions of dollars every year. A vast majority of these claims are the result of product failures caused by defective products. Until DPI entered this market, depending upon the insurance company, only 1% to 5% of claims were successfully subrogated. Through the use of DPI’s proprietary database, we are able to investigate the “cause and origin” of losses and provide our clients with information enabling them to cost-effectively subrogate almost 70% of their claims.
Subrogation is a legal principle, which provides that, to the extent an insurer has paid for a loss, the insurer receives the policyholder's right to recover from any third party that caused the loss.
Buying proposition:
This company has developed their own niche in the insurance industry and along with that they are developing a second niche in product failure analysis:
B: Diversified Product Inspections, Inc. Signs 10 Year $1 Million Dollar Contract
OAK RIDGE, Tenn., Dec 15, 2003 (BUSINESS WIRE) -- Diversified Product
Inspections, Inc. (OTCBB:DPRI), a provider of independent product failure
analysis, air contamination and fire investigations for the insurance industry
announced that the company has signed a 10 year Use and Consulting Agreement
that will be worth over $1 million dollars over the life of the contract.
John VanZyll, president and CEO said, "On December 1, 2003 DPI signed a Use and
Consulting Agreement with GBC, Inc., a Tennessee corporation, to provide access
to DPI's product failure database for use in pursuing subrogation on behalf of
insurance companies and individuals who have experienced a loss due to a failed
product. The contract pays DPI $100,000 per year for 10 years for access to
DPI's research data plus hourly fees for consulting time on subrogation cases
being developed by GBC, Inc. DPI looks forward to its relationship with GBC and
sees this agreement as another benefit for DPI's client base and added financial
value to the company, investors, and shareholders. The initial $100,000 payment
is in escrow and funds will be disbursed to DPI on January 2, 2004."
More contracts like the one above will make this an easy call. If they can build a recurring revenue base such as above it will go a long way towards moving this stock price higher.
Numbers are getting better each qtr as the number of inspections continue to mount:
biz.yahoo.com
Interview avail here:
biz.yahoo.com
Company www site here:
dpi-inc.com
Most recent newsletter from company here:
dpi-inc.com
In sum you want to be with a leader in whatever sector or niche you may be investing in. Here you can get in on the ground floor of a developing dual niche in the insurance industry. The fact that DPRI can save the big and small insurance companies money should suffice to keep the company thriving. |
