DMAT Dematco, Inc -- MrSwing

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DMAT Dematco, Inc
Nov 04, 2008

Anderson800

The Penny Stock Pick Blog
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Dematco, Inc has signed several contracts in the past two months to dematerialize just under half a billion face value of insurance paper. Their new products that they are creating are called Senior Life Settlement Units (SLSU). The six contracts that they have announced in the past two months will provide them revenue of about 15 million dollars this year.
If they can keep up any sort of pace of signing new contracts this stock should take off. The stock started to move at the time of their last quarterly report. It had went from 2 cents a share up to 10 cents a share. I think a lot of people were expecting that they would have revenue to report but did not in October. The way they are accounting their contracts they receive a pre-payment but do not report it as revenue until the contract is complete. It says on their website the new contracts (pilots) will take approximately 6 weeks to complete and then subsequent contracts should take about 2 weeks to complete. With this is seems that they should have at least a couple of the contracts completed before then next quarterly report due in January. When this report comes out they may not only show revenue but they may have positive earnings as well because the overhead on what they are doing seems very low.
I actually expect from a few rough calculations that they may be able to report 4 cents per share earnings this year and with those earnings if they are signing new contracts this should be at least a $1.00 per share stock.