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Microcap & Penny Stocks : ADTC
ADTC 0.000001000-99.0%Jun 2 10:25 AM EST

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To: Thomas Kirwin who wrote (116)11/13/1997 11:39:00 AM
From: MC Niemi  Read Replies (1) of 329
 
The question is how accretive the acquisition will be. From what I have heard it is going to cash flow $3 million per year. Walters definition of cash flow is "before interest expense".
We do not know what the purchase price is or what interest rate they borrow at so it is tough to get a handle on how accretive this deal will be.

Here is some additional information on the deal:
1) DNA is running about 70% of capacity so there is room to grow.
2) DNA makes "old style" capacitor film but with a minor equipment change they will be able to make the new HED film which has a much higher profit margin. Over the next few years DNA will convert to making the new HED film.
3) DNA has over 500 customers with the largest customer accounting for no more than 2% of sales. Their sales team will be out selling the new HED film through Europe.

MC
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