DMX

DMX: together with parent KDDI (52% interest), will enter the cloud computing market in China, offering sales mgt and other smartphone-based services to corporate customers starting in July...

KDDI and DMX will jointly set up a development base and build systems
compatible with the Chinese language. The sales management service, called the D-Smart platform, will start next month. Smartphones equipped with bar code readers will be provided to retail stores so that their headquarters can monitor sales and inventory data at each location over the Internet...

The service will start at ~Rmb 1,000 a month. KDDI made the price affordable to SMEs, and to reduce their high initial invmts in hardware or software. This will allow the Group to generate recurring income...

Stock may see interest given it is poised to be one of the first movers in the potentially high growth cloud computing industry in China. Smartphones account for 17% of cellular phones in China, up from 7% in 2008, with the proportion expected to continue growing. But bcs systems using smartphones have not caught on among businesses there, KDDI has determined that its offerings will be competitive. The enterprise mobile apps mkt in China is est to reach US$4.1b by 2014...

NRA, Madison Williams have Overweight/ Accumulate ratings with $0.42 / $0.49 TP rptvly. The company counts Venture Corp as its other 2nd major sh/h with 12% stake.
Stock trades at 18.4x P/E, 0.9x P/B.
Stock +6% at $0.345, amongst the top actives.