please take the time to read this

this could be a little long but please take the time to read it.

the QTK technology which is being rolled out in Beijing and Lebanon and now in Adelaide and Perth is the very same technology which has been in operation in Melbourne and Sydney for years.

It is NOT new technology.....its improved technology!

As to the core of the system.....transponders.

As advised by QTK as late as February,QTK now has stock to sell for the first time in 2 years.

The reason for this is simple..... and also quite complex as behind the latest transponders reduction in size and costs,was due to development of the new transponders.

The "old" transponders were built on "pager" chipsets.....the "new" transponders are built on proprietary "chips" built for Quiktrak which has allowed the reduction in size and cost.

As to manufacturing...as advised in May .....QTK have appointed a manufacturer (Warderley) after a succesful "trial" run of 10000 units which were built,tested and delivered to specs.

In other words QTK sub contract out manufacturing,where Warderly have tendered for manufacture of transponders for a "cost".......fixed!

As QTK supply the "chip"...Warderley manufacture housing and some other componentry to create the "transponder"

QTK........BUILD and OWN the networks in a given country and in this case Beijing.

that is at QTK's cost.

QTK then SUPPLY....transponders to the its partners in this case China Alarm Holdings in Beijing.

There are NO other costs for QTK.

However QTK earn ongoing royalties for EVERY transponder as QTK own the network........on top of profits from every tansponder delivered.


Now to contract escape clauses.......

i am not sure what company has EVER produced its contracts for public scrutiny and for anyone to ask this of QTK is bizarre but......

1.....Since QTK...OWN the network

2.....QTK owns the transponder "chip"

Its difficult to understand how anyone could benefit other then QTK.

the only risk i see is if its partner went belly up.

Somehow,i do not see the PRC going belly up.

As to the PRC seizing the asset.....a nonsense but they would simply have a network which they cannot operate and QTK have lost nothing.

QTK has funded......network rollout,development and R & D from its own revenue stream.

And since the first run of manufacturing has been completed.......the need for increased level of funding in R & D etc is not required as QTK has now moved into the manufacturing phase of its business.


now to the slaient point share price.

.the Top 20 has not changed in essence since QTK relisted save for two notable entries

Apex and Thorney are now in the Topp 20 and are substantive shareholders with Thorney buying shares on market.

For the most part the Top 100 has not changed save for some shuffling ie....some increasing holdings and some decreases.

However the Top 100 own around 90% of QTK which has been constant since relisting.

This to me suggests those with real money hold and know what is happening..........day traders have had fun with QTK.

The correlation between the rise and fall in the share price and the development of what QTK are doing is a bizarre analysis.

It is to suggest if a share price rises.......the contracts and company is all "for real"

A nonsense suggestion.......for example

Lets look at SEN and CAZ ( of many)

both went to crazy heights.......only to crash back to earth.
so now the SEN business is shonk and all contracts are false???????

the market wants to see from SEN exactly what it wants to see from QTK......revenues and then profits.

Quiktrak is doing what they need to do in building a major international business.

Talk on message boards is NOT going to influence what QTK do now or in the future.

The business is doing everything they have said they would do............without exception!

They said they have a contract with the PRC and China Alarms for $380m USD.........

They said they are building a network in Beijing

They said they are building a new transponder which was 80% cheaper and 80% smaller

They said they have 50% of the Australian market

They said rollout of networks etc would be funded from its own revenues

All...fact and delivered.

Now Quiktrak have to deliver on the substantive part of the business which they TOLD the entire market would happen in Q3 2006......manufacture and delivery of transponders to China to begin.

Like they flagged to the market they would get other contracts for otehr cities in China.....then they announced Hubei.

From what i have seen......what QTK have said it would do...it has done.

Hope that helps...........and IF you do not believe anything of what i have said and what QTK have said......the choice is simple.

Move on and do NOT buy Quiktrak.

Its really that simple.