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Technology Stocks : ADSX -- Ignore unavailable to you. Want to Upgrade?

To: Ellen who wrote (121)	12/5/1999 9:55:00 PM
From: Steven Messina,L.M.T.	Respond to of 1129

Ellen, A very informative post. I'm scavenging the net learning all I can of IntelleSale. From ZDNet interactive edition:To most people, an old computer is nothing more than an expensive dust collector. But for IntelleSale.com, a thriving online computer retailer, old computers represent cold hard cash. IntellSale.com (www.Intellsale.com) has emerged as a leader in the market for used and refurbished computers and the No. 129th company on this year's Internet 500 list. It also sells new computers and related components, but its bread and butter remains in turning other people's castoffs into someone else's bargain. "You can buy a computer that's maybe a year-and-a-half-old that's been refurbished, and get it at a substantial discount. That's the basic business model," says Chris Plunkett, an investor relations officer at the Lincoln Park, NJ based company. IntelleSale.com is in its quiet period, awaiting an intial public offering (IPO), and would not comment further on the business. However, the company's filing with the Securities and Exchange Commission speaks volumes. IntelleSale.com began selling products online after the second quarter of 1998 and quickly ramped up. For the six months ended June 30, the company recorded $72.6 million in total sales. Of that, roughly 28 percent, or $20.1 million, was derived directly from orders placed over the internet. "The Internet is our fastest growing sales channel and we believe that the Internet will be the basis for our future growth", the company said in its statement. It intends to use proceeds from its IPO to increase marketing and promotional efforts to increase brand awareness, and forge partnerships with major portals. Over time, IntelleSale.com plans to migrate other areas of its business, most notably system integration, consulting and parts-on-demand services, to the Internet as well. IntelleSale.com purchases most of its computer inventory from large corporations or government organizations that are looking to upgrade their systems or have excess inventory. It also strikes deals with computer equipment manufacturers to purchase their excess inventory for leased equipment. ******************************************************************** I do believe we have hitched onto a rocket in ADSX. Hold onto your shares. Steve

To: Ellen who wrote (121)	12/5/1999 10:19:00 PM
From: Steven Messina,L.M.T.	Respond to of 1129

While scanning ADSX's latest 10Q off of Edgars, I thought I'd post a bit of it here. The 10Q was filed on November 15, 1999..so keep the timeframe of the following statement in mind. From Edgar filing: Our objective is to continue to grow each of our operating segments internally and through acquisitions, both domestically and abroad. Our strategy has been, and continues to be, to invest in and acquire businesses that complement and add to our existing business base. We have expanded significantly through acquisitions in the past and continue to do so. Our financial results and cash flows are substantially dependent on not only our ability to sustain and grow existing businesses, but to continue to grow through acquisition. We expect to continue to pursue our acquisition strategy in 1999 and future years, but there can be no assurance that management will be able to continue to find, acquire, finance and integrate high quality companies at attractive prices. From that statement, one would conclude an acquisition is in the works this month and is on the verge of being announced. But wait..there's more... During the second quarter of 1999, we made several acquisitions. In April 1999, we acquired: (a) 100% of the outstanding shares of common stock of Port Consulting, Inc., an integrator of information technology application systems and custom application development services based in Jacksonville, Florida; (b) 100% of the outstanding common shares of Hornbuckle Engineering, Inc., an integrated voice and data solutions provider based in Monterey, California; (c) 100% of Lynch Marks & Associates, Inc., a network integration company based in Berkley, California; and (d) 100% of STR, Inc., a software solutions company based in Cleveland, Ohio. Is it just me, or does ADSX remind you of a mini CMGI? Not only are they gaining strength via acquisitions, but they are also selling off non productive/non core businesses to free up cash for further acquisition and expansion. Example: In October 1999, we disposed of four business units within our Communications Infrastructure Group for total consideration of $13.5 million. We have concluded that the business units within this segment are no longer core to our operations and we anticipate that we will dispose of the remaining two business units within this segment by the end of the first quarter of 2000. By dispose, they mean "sell"...$$$$$..and that makes me happy : ) From what I read on Edgar, ADSX is utilizing cash for aquisitions. Also, it seems we are doing very well concerning cash reserves: LIQUIDITY AND CAPITAL RESOURCES As of September 30, 1999, cash and cash equivalents totaled $9.0 million, an increase of $4.4 million, or 95.7% from $4.6 million at December 31, 1998. Cash is generally applied to the our revolving line of credit as it is collected. One of our stated objectives is to maximize cash flow, as management believes positive cash flow is an indication of financial strength. However, due to our significant growth rate, our investment needs have increased. Consequently, we may continue, in the future, to use cash from operations and may continue to finance this use of cash through financing activities such as the sale of common stock and/or bank borrowing, if available. Ok...I have succeeded in boring everyone here. Just wanted to share. Good luck everyone...we own a fine company with solid fundamentals and what seems to be a very prosperous future full of growth. Regards, Steve