On4 Communications Inc (ONCI)

[turn144]

It only takes one person (dealer) to say to another dealer - hey I have this after market app that I am selling as an add on to the sale of the care and getting an extra $10 month on the lease - these dealers are only interested in one thing - $$$$ - with the squeeze on margins due to the proliferation of on line tools to get the lowest price on a car, these folks are looking for ways to embellish their bottom line and these extra after market options are the way to go.

Tire packages, dings/dents, etc. is where there is money to be made - now add in a distracted driving app - everyone is getting a pitch on this and even if only 25% take it - the revenue is huge.

There are ~17M cars sold every year and then you also have all the used cars that are sold - this is a captive market - you only go in to the dealership to buy - it's not a mall where you browse - you go in and buy and then you have to listen to the pitch after sale and with the fact that most sales are leases now - BOOM.