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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (646)	12/1/1997 1:13:00 PM
From: Brad	Read Replies (2) \| Respond to of 18998

Mr Pink, There is an announcement today from ADOT of "Key Developments" regarding an important acquisition for them. Have you looked at this issue? Here is some of the research I have done on ADOT. It is a Bulletin Board issue. ADOT announced info on the Acquisition of a $7 Million company with pre-tax profits of $1.5 Million. Here's the URL for today's press release: biz.yahoo.com It appears that this acquisition could give them an EPS of .22 cents even BEFORE what they would have in earnings from the flat panel displays (These are large 14 x 48 FOOT Electronic, Remote Controlled Billboard Displays). ADOT Home Page: otcfn.com Total Shares Outstanding: 6.7 million Stock is currently trading at only about .33 cents !! ADOT said last week that they are "on target" to deliver their first 2 displays in December and January as previously stated. Each display is supposed to sell for around $900,000 with a profit margin of over 30%. They expect to sell 22 - 25 displays in 1998 & 1999. That would be about $20 - 22 MILLION in sales with pre-tax profits of around $6 - 8 MILLION. The acquisition mentioned today could add about $7 MILLION in annual revenue with $1.5 MILLION in pre-tax profits. 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. With these acquisitions, it looks to me like there would be 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 is trading at only about .33 cents. By using an estimated multiple of just 20 (Outdoor advertising companies trade at extremely high multiples), I think this could be a $10.00 stock in a fairly short time (12-18 months)! However, what is REALLY interesting is that if ADOT just does the 22 - 25 displays over the next 2 years WITHOUT any acquisitions, I think it is possible they could have an EPS of .47 cents!! It could still be a $9.00 Stock !! Here's the URL for the press release that talks about the funding: biz.yahoo.com The SI Thread: Subject 16128 See this post for a good "OVERVIEW" of what this company does: Message 2771061 Obviously, these are just MY opinions and I would appreciate hearing others. ADOT looks like it could be worth doing further investigation. As always, don't just take my word for it. Everyone should do their own research BEFORE investing in anything. Best wishes, Brad