Check this out guys !!
We should have an interesting week as more and more people see the potential that I see !!!
(COMTEX) B: Stockreporter.de Announces Investment Opinion On Advanced
B: Stockreporter.de Announces Investment Opinion On Advanced Optics Electronics
Inc.
NEW YORK, Aug 23, 1999 (BUSINESS WIRE) --
Stockreporter.de Begins Coverage of Advanced Optics
Electronics, Inc. (ADOT) With a Strong Buy Recommendation
and a Conservative Price Target of $2 Per Share
Advanced Optics Electronics, Inc. (OTC BB:ADOT) today received a
strong buy recommendation from the Stockreporter.de, a leading European
financial Internet publication at www.stockreporter.de. The
Stockreporter.de specializes in the coverage of micro caps and
undervalued OTC and BB companies.
The successful team of Stockreporter.de is the first independent
analyst from Europe to begin coverage of ADOT and to release an
investment opinion. The Stockreporter.de begun coverage with a
conservative target price of $2 per share for the year 2000 at a
current share price of $0.25 offering a short and mid term potential of
more than 700%.
"ADOT is one of the most interesting companies to come to our attention
in recent years," Dennis C. Hass from Stockreporter.de said today. He
continued: "With its patented flat panel display technology, ADOT is
poised to capitalize on the dramatic success and growth potential of
the outdoor advertising industry. According to management's knowledge,
no other company is currently working on like products. In my opinion
the products planned by ADOT will be superior to the established forms
of electronic display technology."
In addition to this, ADOT has established a strategic position in
biomedical technology by acquiring 22% of BioModa Inc. which is an
emerging biomedical company specialising in break-through cancer
diagnostics and therapy. ADOT will produce the scanning devices
necessary to the cancer detection process.
Both the competitive advantages in flat panel display technology and
the participation in BioModa encouraged the Stockreporter.de to regard
ADOT as a first class investment opportunity and as one of the most
promising shares currently traded in the OTC and BB segment.
The report of Stockreporter includes the following information:
COMPANY OVERVIEW Advanced Optics Electronics, Inc. (OTC BB:ADOT) is a
technology company based in Albuquerque, N.M. Its primary focus is the
development, production and sales of its novel and innovative
electronic flat panel displays. The company maintains an R&D facility
and manufacturing plant, and is engaged in building large-scale flat
panel displays utilizing its patented technology.
The Company was organized as a Nevada corporation on May 22, 1996. On
November 7, 1996, the Company acquired the business and patents of
PLZTech, a company involved in the development of flat panel displays.
ADOT management has concentrated its efforts in developing its
proprietary Spatial Light Modulator (SLM) flat panel display at the
Company's facilities. This advanced technology has product application
in "television quality" billboards, medical testing equipment, military
displays, computer monitors and high definition video transmission.
The SLM light valve works the same as a water valve controlling the
water flow in a water pipe. Here the valve is controlled
electronically; the valve will respond to an electrical input and will
modulate the light passing through the valve. By reducing the valve
size (.001 inch square) and placing them in a matrix, an SLM is formed.
The major advantages of the SLM flat panel displays which are scheduled
for delivery late this year are viewing quality, affordability,
customer system integrity, and remote change in seconds to reduce
advertising site maintenance. The primary initial product, which will
be marketed to users of Outdoor Advertising Billboards, is a
large-scale electronic flat panel display. The development of AOE's
product represents the first time that such display technology is
available for Outdoor Advertising Billboards.
The Company's product has benefits over traditional billboards of
providing dynamic, eye-catching ads and rapid change of image to
provide for multiple advertisers during a 24-hour period. The ability
to change images from a remote location will provide advertisers with
immediate access to billboard markets. The AOE billboard display will
provide an image 13' X 36' which is approximately the same size as
existing billboards.
The major advantages of the ADOT flat panel displays are better viewing
quality, affordability, customer system integrity, and remote change in
seconds to reduce advertising site maintenance. They are also
inexpensive to produce relative to alternative systems. In addition,
none of these technologies can be scaled (driven larger or smaller) as
well as can the ADOTsolution.
In addition to its core business, ADOT has established a strategic
position in biomedical technology by acquiring 22% of BioModa Inc.
Based in Albuquerque, N.M., BioModa Inc. is an emerging biomedical
company specializing in break-through cancer diagnostics and therapy.
BioModa's research team of prominent cyto-pathologists have developed a
patented process of detecting the onset of lung cancer several years
prior to the actual appearance of the invasive carcinoma. BioModa is
also working on diagnostic imaging and radiopharmaceutical therapy for
other types of cancers. Recently, BioModa concluded an agreement with
the People's Republic of China to provide a lung cancer diagnostic
turnkey package to the city of Shanghai. Using its proprietary
technology, ADOT can produce the scanning devices necessary to the
cancer detection process.
MARKETING STRATEGY After researching various markets including laptop
computers, HDTV flat screen industries, and Outdoor
Advertising/Billboards, management has decided to concentrate its full
efforts and attention on marketing to the Electronic Outdoor
Advertising/Billboardsindustry.
Management believes that, due to the Highway Beautification Act, the
number of billboards nationwide will not increase dramatically but
should remain stable. Advertisers will place increased focus on
securing and developing prime billboard locations. The customer base
for billboards is diversifying as more advertisers are attracted to
this media. Management's market penetration analysis is based on
capturing existing sites in a stable market.
It is anticipated that the company's product and marketing strategy
will create a new segment of the outdoor advertising market while
leveraging the underlying growth and excellent fundamentals of the
existing market. Revenues will be derived from a combination of direct
sales, owned and operated billboards, leasing, licensing, and
partnerships. Experienced professionals in finance, marketing, and
research are leading management.
Initial customer contact will be through the company by directly
communicating with potential customers. Management is developing a
marketing department to follow through on each transaction and
coordinate withmanufacturing.
COMPETITIVE ADVANTAGES ADOT will compete against established forms of
electronic display technology. Management believes that its planned
products will be superior to these established products. To
management's knowledge, no other company is currently working on like
products. Nevertheless its products and technologies will be subject to
substantial competition as the market and technologies evolve.
CRT's and passive and active LCD's currently dominate the electronic
display market. Primarily large multi-national companies manufacture
them. However, these current industry leaders hit very difficult
technical hurdles in extending the performance of their displays using
current methods.
The Company will compete with the existing Billboard display techniques
of hand painted or printed and pasted signs. Recently, the trend has
been toward creating the art digitally, but these images are still
printed on large sheets and pasted up in the same manner as before
World War I. These forms of billboard presentations will only be viable
in low density/low traffic areas.
Approximately 65% of billboards were booked on 12-month contracts last
year. Long term contracts could potentially limit the access to
desirable sites during the start-up period. However, the trend is to go
to shorter-term contracts with significant turnover.
According to the creativity, flexibility and lower costs achieved
through technologies owned by Advanced Optics Electronics the company
promises big competitive advantages and an enormous growth potential.
In addition, the worldwide market for processes for the early detection
of cancer and breakthrough therapies is huge. ADOT's strategic partner,
BioModa already has a foothold for such activities in China, where more
than 900,000 people die annually from lung cancer. BioModa is also
currently engaged in testing projects with partners elsewhere in the
world, with a significant presence in Asia.
GROWTH INDUSTRY Over the past ten years, there has been considerable
consolidation in Outdoor Advertising. The four leaders in the industry
currently account for approximately 48% of the billboard market. Media
companies have been buying billboard owners in order to offer packages
of TV, radio and newly acquired outdoor space to advertisers.
- For 1999, advertisers are expected to spend about $4.8 billion on
out-of home media.
- The outdoor advertising industry currently enjoys a mere 2%
of the $190 billion advertising market and industry experts
are unanimous in their view that it should experience a
significant increase in market share.
- Outdoor is one of the most stable advertising media with its
principal risk to success and expansion basically limited to
economic recession. Since 1970 it has experienced only one
year of revenue decline(1992) and has seen revenue grow at a
compound rate of 8% per year.
- In 1997, billboards accounted for 57% of outdoor ad revenues and
that proportion is growing dramatically.
EARNINGS PROJECTIONS The following projections estimated by the
management are based on conservatively projected revenues. So we
consider these figures to be very realistic and achievable:
Revenues Projection:
Year 2000: $11,085,000
Year 2001: $39,229,560
Year 2002: $109,256,840
Earnings Projection:
Year 2000: $2,611,000
Year 2001: $12,150,000
Year 2002: $34,700,000
ADOT is a publicly traded company with total shares issued and
outstanding of approximately 34,188,500 million which leads to the
following earnings projection per share:
Earnings Projection per Share:
Year 2000: $0.08
Year 2001: $0.35
Year 2002: $1.01
The following share price targets are based on a conservative 25
PER for an emerging high tech company:
Share Price Target:
Year 2000: $2.0
Year 2001: $8.9
Year 2002: $25.4
EVALUATION AND OUTLOOK Following these projections and calculations
we conservatively expect $0.08 earnings per share for the year 2000.
Therefore we set our share price target to $2 at a conservatively
estimated PER of 25 which in case of this tremendous growth potential
seems to be more than justified. Hence, the share is only valued at a
current price of $0.25 and is therefore drastically undervalued.
ADOT has proprietary technology for a product for which there is
significant demand in a rapidly growing market. Prospective customers
have already approached ADOT expressing intent to acquire its flat
panel outdoor displays. The Company's proprietary technology has
applicability to other products with considerable growth potential. It
has a substantial equity position in a biomedical firm, also with
patented technology in a high profile area, with which it can develop
synergy.
So even drastically more than $0.08 earnings per share already for the
year 2000 seem possible to us, especially as we can reckon with much
more success for ADOT than we very conservatively assumed. However,
revenues and earnings projections are reasonable and represent a very
successful business venture.
Furthermore in view of the amazing growth potential of ADOT and the
tremendous earnings per share estimates (e.g. $1.11 for the year 2002)
even much higher share price dimensions seem to be clearly justified.
The Company's audited balance sheet is "clean." At merely $67,000, long
term debt is less than 6% of total net worth. The fact that it is a
fully reporting organization compliant with SEC requirements shields
the investor from risk exposures inherent in most emerging, unlisted
companies.
Assuming net margin projections are reasonably valid, each flat panel
display unit sold could generate about 1.5 cents in EPS. At a
conservative 25 PER for an emerging high tech company, one could impute
an incremental value of 30-35 cents per share for each unit ADOT sells.
Given the high sales growth projected for ADOT we believe a 25 X PE
multiple on forecast normalized earnings is extremely conservative.
Therefore, we would expect the Company's common stock valuation to be
in the neighborhood of $4.00 by mid-2000.
We would like to also mention an additional and very important aspect:
The management of the Company is currently evaluating the option of
applying for a listing at NASDAQ Small Caps. So in particular, this
forthcoming listing of ADOT with regard to the renowned NASDAQ will
massively inspire the share price. Therefore we believe especially this
fact of taking the stock public to a major stock exchange will bring a
massive thrust of both new retail and new institutional investors
driving the share price into dimensions the stock really deserves.
Furthermore ADOT is going to apply for listing also at a major European
stock exchange to increase the international exposure and to establish
new investor relations in Europe. These two potential listings will
open the door for new major institutional investments by e.g. national
funds and investment bankers and will give the share price massive new
drive. For that reason potential investors have got only now the
extremely unique and promising opportunity to invest in the shares of
ADOT on a more than advantageous share price level of $0.25.
According to these of ADOT we are strongly convinced that the ADOT
share is drastically undervalued at a current price of $0.25 offering a
short and mid term potential of more than 700%. For this reason we
believe that the ADOT share currently is a one of the most exciting and
most promising investment opportunities for both retail and
institutional investors and that this share is going to be one of the
best performing high tech shares in the next months.
NOTICE The recommendation of Advanced Optic Electronics (ADOT) was done
on an unsolicited basis and the team of Stockreporter.de received no
compensation for the recommendation. The complete recommendation and
additional information (e.g. a corporate profile and interviews with
the CEO and the CFO) can be accessed at the Stockreporter.de web site
at www.stockreporter.de which is going to be the No. 1 Micro Caps and
OTC:BB site in Europe and especially in Germany. The Stockreporter.de
web site is completely available in both languages, German and English.
Any Stockreporter.de micro cap recommendation still includes a high
degree of risk and is at the investor's individual and own risk.
Therefore no claim for any kind of warranty can and will be accepted by
the Stockreporter.de.
If you have any further question regarding this buy recommendation or
any other inquiry or suggestion, please, do not hesitate to contact
Stockreporter.de at any time. We appreciate it very much to stay in
close contact to both institutional and private investors and OTC and
BB companies.
Copyright (C) 1999 Business Wire. All rights reserved.
-0-
CONTACT: Stockreporter.de, New York
Dennis C. Hass, +49-172-4062621
Torsten Prochnow, +49-172-4031383
EMAIL: contact@stockreporter.de
HOMEPAGE: www.stockreporter.de
WEB PAGE: businesswire.com
GEOGRAPHY: NEW YORK INTERNATIONAL EUROPE
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
*** end of story ***
|
