To: Eamons who wrote (10 ) 12/1/1997 10:44:00 AM From: Brad Read Replies (1) | Respond to of 25
To ALL: I just did some research on ADOT. This could be a strong opportunity. ADOT just put out a press release TODAY regarding the Acquisition of a $7 Million company with pre-tax profits of $1.5 Million. All the pieces might be coming together here. This acquisition could give them an EPS of .22 cents even BEFORE any earnings from flat panel displays (These are large 14 x 48 FOOT Electronic, Remote Controlled Billboard Displays). ADOT Home Page: otcfn.com (lots of interesting info at this site) Total Shares Outstanding: 6.7 million The stock is currently trading at only about .30 cents. The company confirmed last week that they are "on target" to deliver their 1st and 2nd displays this month and next. Each display sells for about $900,000 and the profit margin is supposed to be "excellent." 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 complete an acquisition announced last July, it would increase Total Outstanding Shares to about 13.1 million, but would increase annual revenue by about $8 MILLION per year. If they do BOTH of these acquisitions, we could see Total Outstanding Shares of only 13.1 million with Pre-Tax PROFITS of $7 MILLION or more! That would be an EPS of .53 Cents !!! Right now this issue is trading at only about .30 cents. By using a very conservative estimate multiple of just 20 (Outdoor advertising companies trade at extremely high multiples) , this could be a $10.00 stock over the next 12-18 months! However, what is 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 the URL for today's press release:biz.yahoo.com Here's the URL for the press release that talks about the funding:biz.yahoo.com Here is the URL for the SI Thread:Subject 16128 For a good "OVERVIEW" of what this company does, see this post on SI:Message 2771061 Listing of several recent press releases:dljdirect.com This is just MY speculation based on my research, but we might be on to something here. Please DO NOT Invest ANYTHING until you are comfortable with what you have found out for yourself. Best wishes, Brad