Sign Up NowThis Month's Tiny Gems - April 2013

Digital Cinema Destinations Corp. (DCIN)
Intellipharmaceutics International, Inc. (IPCI)
SED International Holdings, Inc. (SED)

 

 

 

Digital Cinema Destinations Corp. (DCIN)

 

Digital Cinema Destinations Corp. (DCIN) has been strategically expanding their footprint through acquisition of solidly performing theatres, transforming the mundane into the modern as the venues are upgraded to a state-of-the-art digital platform that is not only much more efficient/cost effective, but also provides movie-goers with a much wider array of entertainment options, from dynamic/interactive content to live sports and just about any other event you can imagine.

 

By going beyond the analog theatre experience and offering customers all the fruits of a true digital entertainment center, DCIN has made some serious infrastructural progress since the company's IPO back in April of 2012, growing from just 3 theatres with 19 screens, to a full 18 locations with 178 screens. The benefits of digital conversion go beyond audience immersion and are actually super friendly to the environment as well. The digital theatre model dispenses with 70 pound film cans, film couriers, and the difficult, expensive, as well as time consuming standard projection methods (literally hours to spool reels onto platters), replacing everything with digitally distributed and projected content.

 

This venue concept is ideal for other things you might not think of at first as well, like hosting big corporate conferences, putting on gaming events, or even doing auctions. The digital entertainment model is far more than just watching movies and the company truly embraces their target market, encouraging things like the performing of skits along with the program in certain cases and singing along, even tailgating parties outside for sporting events. DCIN has rapidly carved out considerable market share for itself from the standard market model and is doing business hand-over-fist as consumers flock to a platform that transcends their expectations of a traditional cinematic outing.

 

DCIN has their sights set on as many as 100 theatres and 1k screens in 75% of the nation's prime designated marketing areas (DMAs), fully intent on reshaping what consumers expect in a night out at the movies. Investors love this concept because what they are doing here is taking an already functional model and adding feature-rich layers, as well as a broad new pipeline of content, while simultaneously lowering operational overhead (all in one fell swoop).

 

 

 

Intellipharmaceutics International, Inc. (IPCI)

 

Intellipharmaceutics International, Inc. (IPCI) is poised for a potential landmark year. Specializing in the research, development, and commercialization of controlled-release and targeted pharmaceutical products, Intellipharmaceutics waits at the ready with product candidates that have helped the company garner “Buy” ratings from four different analysts.

 

Analysts from three firms, including Ladenburg Thalmann and Maxim Group, have projected a $7 price target for Intellipharmaceutics. Jason Kolbert of Maxim Group foresees that Intellipharmaceutics can become a pioneer in launching generic long-acting versions of existing therapeutics – also cashing in on the growing concern over prescription drug abuse and recent legislative efforts to curtail that problem through the development of abuse-deterrent drugs.

 

Rexista is an Intellipharmaceutics drug delivery platform that has been created to work with opioids to prevent abuse of them by injection, inhalation, or oral ingestion. Users commonly abuse oxycodone, for example, by pairing it with alcohol – a combination that can be lethal. Rexista provides an answer to this abuse problem by keeping the entire dose of oxycodone or other opioid from being released when alcohol is present in the system – thus negating the effects the abuser was hoping to achieve.

 

In February, Rep. William Keating, D-Mass., introduced “H.R. 486: Stop Tampering of Prescription Pills Act of 2013,” a bill aimed at incentivizing the development of abuse-deterrent drugs. The FDA has additionally released recent statements about its concern over prescription opioid abuse. As the nation seeks solutions for this ever-growing problem, Intellipharmaceutics is poised to capitalize.

 

 

 

SED International Holdings, Inc. (SED)

 

SED International Holdings, Inc. (SED) has built a strong reputation for itself since inception back in 1980, acting not only as Distributor of Choice™ for a broad selection of top computer hardware and consumer goods that range from personal care products to appliances, but also as a master of globe-spanning, custom-tailored supply chain management solutions.

 

Given the array of proficiencies SED has nailed down through its operations, the company is in a unique position to provide exceptional support for e-commerce, Business-to-Business, and Business-to-Consumer markets, drawing heavily on a massive, 10k partner plus reseller network that covers the US and Latin America. The top vendor names in PCs and Tablets, as well as accessories, components, peripherals, and power supplies, have helped put SED on the industry map as a permanent feature. Tightly-knit supply chain ties have helped SED realize their philosophy of sustainable economic growth, despite the company’s rapid logistical ascent over the past three decades as operations have taken off.

 

One look at the company’s recent Q2 FY13 performance and you can tell SED has really pulled out the all the stops when it comes to streamlining domestic operations and focusing on the retail and technology integration channels. Net sales for Q2 were up handsomely over the previous year’s quarter on mounting business in consumer product categories, with tablets, notebooks, and televisions all leading as major components of the 23.7% rise. The consumer electronics segment has shown similarly robust performance as end market demand for everything from cameras and home theatres, to e-readers and mobile devices continues to defy analyst estimates.

 

Operations down in underserved Latin America have choice growth and profitability metrics for SED, and their customer/vendor network in the U.S. is really holding strong. With shrewd leadership driving for even higher operational efficiency targets, the company is now seeking to build upon this foundation and improve overall long-term competitive positioning by further refining U.S. operations.