Remember when very few cars had a radio, now its common place.
Electric windows, sun-roofs and air-con where for top of the range vehicles.
Only XR3i and GTIs had fuel injection.

Now we are seeing SAT-NAV and in-car DVD and LCD SCREENS being fitted by car owners These are considered luxury items still or add-on kits.

We are now seeing SAT-NAV and in-car entertainment systems being fitted to more and more new cars, this will be the expected norm in the future.

DVL has over 15 years experience in the development and supply of in-car audio visual entertainment and satellite navigation solutions, with key strengths in the following areas:
Research and development
Concept design
CAD design and support
Programme management
OEM engineering liaison
Hard and soft trim fabrication
Performance and safety verification
Component manufacturing
Production assembly
Logistics management
Marketing support


With yet another contract added again today I feel that Designer Vision Ltd is the stock to back and get in early on the car entertainment boom.

Not done much for the SP. It is down 4.26% on the day and more than 30% down from its high.

Considering the large number of contracts they have had recently many of which should have been fullfilled by now and generated profits (?), tney have quite an appetite for cash.

Had opportunity to take part in placing of DVS on Monday; didn't have the free cash but decided to take a look. Positives appear to be position in growth markets, bullish Chairman report, low pe, significant increase projected in order book, just moved into profits. Concerns appear to be the need for additional fund-raising and perhaps the cut-throat nature of the market (i.e. away from the in-car entertainment base). I wonder why the price fell on the interims; perhaps bigger turnover jump expected but they did move into profits. Would appreciate any insights.

Eric

EW...would be interested to know how the opportunity to take some of the pacing came about...was it a private placing? i am ana holder and did not get the chance to participate

Treblewide. Don't see any reason for secrecy as it is could be in NOMAD's interest. Hoodless Brennan act as NOMAD for DVS and clearly offered the placing to people on their client list. Terms not particularly beneficial but no commission charges and 10 days to pay. I have made money through them in past and they do come up with some interesting offerings. Having not been in a position to respons on this occasion I could well buy in the market but looking for a better perspective on the company first. My reading is that they do have a very strong position in the in-car market but that is limited in size in this country although they are making in-roads in the US. The hand held market seems much more cut throat and I wonder if they have any USPs.

Eric

Rumours of Asda and Tesco contract wins for Designer Vision

The mainstay of any well ramped stock - unfounded easily spread rumours.

Wal-mart rather than Asda!

Daily Express 23/11/06

Portable multimedia systems supplier Designer Vision eased 0.13p to 5.62p despite rumours of contract wins with Tesco and Asda owner Wal-mart

Most holders like myself are holding long term and so not looking for short term ramp gains but solid gains from a company performing well, with big orders making profits. So any news of contracts will get us true holders excited looking for our belief in the company to come good.

Techie

What would you say were the main strengths of this company that give you the confidence; their USPs. Design? Analysis of market needs? Commercial awareness? Marketing? Speed of action? Some or all of these?

What then are the main risks to them achieving the goals set? Competition? Dog eats dog? Mistaken judgements? Financial control?

Eric

Hi EWRobson, nothing to add to your statements has you summed it up well there. I've been in these since end of Feb and topped up on the way just patiently waiting and hoping to hold for 2 years.

Techie. That's fine. Appears to be a significant upside potential. Also an element of risk so that any holding needs watching. Awaiting funds but aim to take an exploratory stake shortly. My experience is that you need to hold some shares to give motivation to really get to know a company as I feel I know ASOS, Alizyme, Dowgate and, bless their cotton socks, SEO.

Eric

It is becoming a cut throat marfket. ALDI are offering portable DVD players reduced from 79.99 to 59.99. The Far East producers can undercut UK makers every time. DVS's margins must be very tight. I wonder if they make much profit at all on some of their deals. MP3 players are sold for just a few pounds now.



mp3 at 9.99

http://www.7dayshop.com/catalog/product_info.php?manufacturers_id=&products_id=100694

http://uk.aldi.com/sunday_special_buys/productnl_482.html

Haystack: earlier comment that they don't make themselves so obviously source from the Far East. So at the time they set up a deal they will price the product to make a decent margin themselves and allow a decent margin for Viorgin et al. That's not to say that they are under-priced, presumably by internet sales. Whilst the internet share of the market is growing in a lot of areas there is still a decent high street market. But this does mean that product life might not be that long. Technology is changing all the time so I assume that DVSs strength is that they are fleet of foot in bringing new products to the market. Not one to stache away but reasonable to take a short-term view.

Eric

EWRobson, I think you're wrong - there probably are gains to be had in the short term, but I also think they are worth stashing away, and will be a much healthier price in a year or mores time. Certainly worth hanging on to till the results in spring.
I agree they are risky and need watching.

That means they are a middleman and will get their margins cut further. Many major retailers source directly from the manufacturers helping their margins. In fact if they don't make the kit they are superfluous to the supply chain as DVD players, mp3 players are comodity items these days. Companies needing to source these items can deal direct with the Far East.

As far as I am aware DVS design their own products but sub out the production to the Far East. If this is true then they are not just a middleman.

Effectively a middleman as the most of the Far East companies do both design and production. They need only one set of profits. Design in UK and production in Far East means two sets of profits needed before it hits the retailers.

Haystack. Its an important issue. There was an interesting argument the other day by Anatole Kolesky in the Times comapring the Japanese and British economies. Japan remains primarily a producer. Britain doesn't have much production capacity left but that is the reason why we are doing comparatively well. Its the 'platform' company which is scoring; fleeter of foot because the time to the market is that much wuicker and they have so much less risk. So DVS are bang within this field; their USP is their design capability and presumably they are fleet of foot. Virgin, for instance, would prefer to deal with a UK company and may even have input into the design requirements. The Far East companies will generally accept their role as they can optimise their production faciloities without needing the design nous or consumer marketing in each market.

Eric

1 December 2006

Designer Vision Group PLC

New OEM contract

Further to our announcement on 20 November, Designer Vision Group PLC is
pleased to announce that it has been awarded the contract to supply a new
rear-seat entertainment system for a Global vehicle within Ford Motor Company's
Premier Automotive Group.

We look forward to announcing further details during 2007.

Commenting on the success of winning this latest automotive contract,
Angelo Panayiotou, Chairman of Designer Vision Group PLC, said:

"We are delighted to win yet another rear seat entertainment programme for a
major car manufacturer. As we stated in our announcement last week, this is
one of a number of contract wins in our OEM division and I look forward to
announcing the others in due course. We have consistently demonstrated our
ability to win such high profile programs, by supplying high quality products,
demonstrating that our expertise in this area is second to none."

Nice to here about another contract in their other area of business, 2 strings to their bow.

Should move higher with the US open I reckon.