To: tonto who wrote (1502 ) 12/1/1997 11:07:00 AM From: Brad Read Replies (2) | Respond to of 1770
ADOT could provide an excellent return! They just announced info TODAY about a "key" acquisition. It looks like all the pieces might be coming together here. Here's what I have learned. Today's press release is about the Acquisition of a $7 Million company with pre-tax profits of $1.5 Million. This acquisition could give them an ADDITIONAL .22 cents EPS even BEFORE what they would have in earnings from their new 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 Current Stock Price: Around .31 cents. Last week the company confirmed that they should be delivering their 1st and 2nd displays in December and January. Each display sells for around $900,000 with a profit margin of over 30%!! 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. The acquisition mentioned in today's press release could add about $7 MILLION in annual revenue with $1.5 MILLION in pre-tax profits. If they complete another acquisition announced previously, 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 in place, 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 .31 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 ! 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 could be well worth the DD time, but keep in mind, this is MY speculation based on my research. Please do your own research BEFORE investing anything. Best wishes, Brad