ADOT - BIOMODA: Profitable Technology with Purpose Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : ADOT - BIOMODA: Profitable Technology with Purpose

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Brad Morris who wrote (1232)	7/6/1998 9:38:00 PM
From: Kurt N	Read Replies (4) of 4650

>>How will ADOT benefit from Biomoda if its not a public company? Dividends?<< If one is just talking about the bottom line on ADOT's financials, dividends are not necessary. ADOT owns enough of Biomoda that for the purposes of accounting, they can use the equity method. Summary of equity method --------------------------------------------------- 1. Must own a substantial amount of shares, and enough to exert considerable influence and/or voting power (if push came to shove). ADOT owns a substantial amount of Biomoda 27%. ADOT and 1 or 2 Biomoda insiders (even if the other insiders and everybody else were against) could easily get 50.1% 2. Biomoda shares are considered an asset (makes balance sheet look good. Biomoda profits increase value of asset) 3. Quarterly increase or decrease in the value of that asset is recognized as a gain or loss. This translates into earnings for ADOT. Assuming a contant P/E ratio, increased earnings translate into an increased stock price for ADOT shareholders. ------------------------------------------------------- ADOT has first rights of refusal for doing the electronic flat-panel displays that are a part of the Biomoda equipment. ADOT earns profits on the displays that it sells to Biomoda in addition to other display applications (billboards, etc.) Biomoda's profits will get reflected in ADOT's bottom line on financials. Alternatively, Biomoda gets bought out by another company for say $200 million (which is low). ADOT owns 27% which means it would get .27 * 200 million = $54 million. Maxinum number of authorized shares is 20 million. $54 million / 20 million shares = $2.70/share Kurt

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next