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Strategies & Market Trends : Attitude Small Stock Discussion

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To: Beermeister who wrote (286)	12/1/1997 11:46:00 AM
From: Brad	of 385

Press Release out Today on ADOT about an acquisition! Could be a great opportunity! The ADOT announcement gives info on the Acquisition of a $7 Million company with pre-tax profits of $1.5 Million. Might want to examine this one closely. All the pieces might be coming together here. This acquisition could give them an extra .22 cents EPS plus what they would have in earnings from the flat panel displays (These are large 14 x 48 FOOT Electronic, Remote Controlled Billboard Displays). Current Stock Price: Around 32 cents!! ADOT Home Page: otcfn.com (Home page has lots of interesting info) Total Shares Outstanding: 6.7 million The company confirmed last week that they are "on target" to deliver their 1st and 2nd displays in December and January as previously stated. Each display sells for about $900,000 and the profit margin is supposed to be over 30%!! They say they expect to sell 22 - 25 units in 1998 & 1999. That would be about $20 - 22 MILLION in sales with pre-tax profits of around $6 - 8 MILLION. If they also do the acquisition announced last July, the Total Outstanding Shares could increase to about 13.1 million, but it would increase annual revenue by ADDING about $8 MILLION per year. With these acquisitions, Total Outstanding Shares could be only 13.1 million with Pre-Tax PROFITS of $7 MILLION or more! That would be an EPS of .53 Cents !!! Today the stock is at only about .32 cents. Outdoor advertising companies trade at extremely high multiples. By using a very conservative estimate multiple of just 20, I think this could be a $10.00 stock over the course of the next 12-18 months! However, what I find REALLY interesting is that if ADOT just does the 22 - 25 displays over the next two years WITHOUT any acquisitions, it looks to me as though they could have an EPS of .47 cents!! It could still be a $9.00 Stock !! Here's today's press release: biz.yahoo.com Here's the URL for the press release about the funding: biz.yahoo.com Here is the SI Thread: Subject 16128 There is a good "OVERVIEW" post on the SI thread at: Message 2771061 Here are several recent press releases: dljdirect.com Please keep in mind that this is MY speculation based on my research. I am NOT an investment advisor, so please do your own research BEFORE investing anything. Best wishes, Brad

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