To: Xeontel who wrote (117 ) 12/4/1999 11:22:00 PM From: Boplicity Read Replies (1) | Respond to of 1129
From the bullmarket report. 1. APPLIED DIGITAL ADDED TO AGGRESSIVE PORTFOLIO COMMENT: We sent out a News Flash on Thursday, adding Applied Digital Solutions (ADSX) to our Aggressive Portfolio. Applied Digital Solutions is a full service communications company, providing a range of products and services to the wireless, telecommunications and digital data industry. For the six months ended 6/30/99, revenues increased 35% to $124.5 million. Net loss before extraordinary items totaled $1.1 million. vs. income of $3 million in the previous year's period. In the three months ending September 30th, revenues were $107 million and earnings were flat. We understand from the company that the full year should produce $350 million in revenues and they expect north of $500 million for 2000. The market cap is now $350 million, putting the company at a level of just one times sales. If they can figure out how to make a reasonable profit, like just 5%, they'll earn over $1 a share. Applied Digital has been named the fifth fastest-growing technology company in the U.S. in Deloitte & Touche's "Fast 500" Program. The annual program is a ranking of the 500 fastest-growing domestic technology companies based on five-year percentage revenue growth from 1994 to 1998. They are an acquisitive company, and have announced plans to buy two more firms by the end of the year. Applied Digital recently announced the repurchase of 2.7 million shares (approximately 5%) of their stock. In September of last year, the Board approved the repurchase of up to five million shares stock. This recent transaction is part of that ongoing program. Price Target: We expect that Applied Digital will touch the high of $16 it set just last week. However, it is a very speculative stock and should not be purchased unless you can afford to lose your entire investment. We forget that stocks go down too. There is nothing worse than that sickening feeling you get when your stocks are going down every day. Remember that feeling now when things are so good, and you will be prepared for it when it does happen. And it WILL happen. The volatility is going to increase as investors acquire the online tools enabling them to get in and our of their $100,000 and $1,000,000 portfolios in the click of a mouse.