IRVINE, Calif., Feb. 10, 2009 (GLOBE NEWSWIRE) -- In a market populated by bright-eyed companies with bold visions of market share and abundant success it is often difficult to discern those with staying power . . . and a real business model. It's even more difficult in technical fields as the average investor usually lacks the acumen to personally validate the company's core product line.
But what can often indicate that a company indeed has the 'goods' is third-party validation. One way to gather such understanding is to see if the emerging small cap has deals with large and established companies. If they do, it serves the company in a multitude of ways.
First, it sends a message to shareholders and the industry that a major company has done the due diligence and believes in the partnering firm. This should instill greater credibility in management and the business plan. Additionally, there are the inherent benefits of the contract which obviously are most desirable for the company.
An example of the above may be an agreement announced yesterday by Document Capture Technologies, Inc. (OTCBB:DCMT), an IP-driven global leader in the design, development and sale of next-generation portable scanning technologies. The deal announced gives DCT a major product sales licensing agreement with China-based company Syscan Technology Holdings (STH).
With new partner STH already entrenched as a leading manufacturer and provider of 2D barcode scanning technology, products and application solutions throughout China, it stands to reason that this relationship can spark the expansion of the international market for DCT mobile scanners. With this significant market expansion DCT has both a new revenue platform and a template for further global penetration. It's potentially catalytic.
With the growth of the financial and security sectors in the Asian market, DCT has positioned themselves to pursue new corporate and revenue growth. In a down market where Google and Apple both are enjoying successes, companies making inroads in growth markets are certainly interesting to follow.
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