ADTC Message Board - Msg: 5203885

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Microcap & Penny Stocks : ADTC

ADTC 0.000001000

-99.0%

Jun 2 10:25 AM EST

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To: pres/ceo who wrote (300)	7/15/1998 2:13:00 PM
From: MC Niemi	Read Replies (1) of 329

Glen: could you explain how you got the figures of a company trading at "less than 5 times cash flow" and less than 1 third of sales"? If you take $2.50 times 4.28 million shares outstanding then the market cap is $10.7 million. Add in the 4.7 million of debt and you have a company worth $15.4 million. Projected sales per your investor relations is $25 million for FY98. Company is trading at .6 times sales not .3 times sales. Are you just using market cap of $10.7 million? That would put it at .4 times sales. On cash flow of less than 5 times? Company is losing money. So lets just assume it is breaking even. Depreciation and amortization run at $700,000 in 1997 which is about .16 per share. This is 15X cash flow. Then what about reinvestment in the business? Not counting acquisitions you spend $624,000 on property and equipment. Where is the cash flow? Are you assuming the company will earn the .30 projected by investor relations? But $2.50 dividend by ($.30 +.16) gets you at 5.5 times cash flow. Is that how you figured it? MC

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