Trek

Trek: +3.2% at $0.49, bucking broader market trend, and continuing its near vertical ascent. Trek’s growth story centers on its partnership with Toshiba, and new product, the FluCard. The FluCard is a micro processor that can be a substitute for SD cards in smart devices, allowing smart devices to ‘talk’ to one another, transfer data and share information wirelessly…

Trek may gain big if the FluCard emerges to be as successful as its previous product, the Thumbdrive. The difference now is that Trek has Toshiba to help protect its IP interests from competitors. Trek will receive licensing fees for the cards, which will be priced at US$50 apiece initially, though prices are likely to slide to around US$30…

With the partnership, Trek now gains access to the 45% of the US$1.3bn SD card market which Toshiba controls. Industry insiders estimate a potential revenue of US$200m a year for Trek by 2013, with at least 20% going straight to its bottom line. This compares with the US$6m Trek earned at its peak in FY07.
DMG only house to cover, with $0.55 target.