I didn't see any R&D expenses in the last 10-Q, so probably no new products being developed. It trades at .3x the tangable book- so I'm holding for a possible buy out at book (92 cents). 48% of the biz is Wal-Mart:
DAC Technologies Group International, Inc. (the “Company”), is in the business of developing, marketing and outsourcing the manufacture of various consumer products, patented and non-patented. Since 2003, the Company’s primary business has been gun maintenance and gun safety, with a target consumer base of sportsmen, hunters and outdoorsmen, and recreational enthusiasts. In 2005, the Company began developing products in the hunting and camping market, and in 2007 and 2008 added a line of household products. In 2009, the Company eliminated a significant portion of its hunting and camping products and some of its household products due to their relatively low gross margins.
Although a significant portion of our business is with the mass-market retailer Wal-Mart (approximately 55% during 2009 and 48% for the first nine months of 2010 ), we have been able to considerably increase our business with large sporting goods retailers, distributors and catalog companies.
Virtually all of the Company’s products are manufactured and imported from mainland China and shipped to the Company’s warehouse facilities in Little Rock, Arkansas and Los Angeles, California for distribution. These products, along with other items manufactured in the United States, are sold primarily to mass merchants and sporting goods retailers throughout the United States and international locations.
Gun Cleaning & Maintenance: We market over fifty (50) different gun cleaning kits, rod sets, tools and accessories used to clean and maintain virtually any firearm on the market......This product area accounted for 60% and 62% of gross sales.....
Hunting and Camping: This product area accounted for 15% and 13% of gross sales .....
Gun Safety: We market twelve (12) different gun safety locks and five (5) security and specialty safes....product area accounted for 19% and 17% of gross sales .....
Household Products: We market five household cleaner dusters and a line of household fireplace screens, tools and accessories. This product area accounted for 6% and 8% of gross sales.....
.....The Company’s gross margins decreased from 30% for the nine months ended September 30, 2009 to 26% for the nine months ended September 30, 2010. This decrease is attributable to the licensing fee the Company now pays for the Winchester ® name for products sold to Wal-Mart, as well as price reductions extended to Wal-Mart in mid-2009. As discussed above, these two issues only affected the first six months/......
