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Microcap & Penny Stocks : ADGI - American Diversified Group -- Ignore unavailable to you. Want to Upgrade?


To: Ditchdigger who wrote (5703)3/14/1998 12:23:00 PM
From: Whiskeyj  Read Replies (2) | Respond to of 9569
 
Well,the truthful mr. Ditchdigger says he never bashes a stock.
For those who want the TRUTH,go to the RMIL thread.look back over MONTHS of DD's posts....make up your own mind.
BTW ditchdigger...as you can plainly see we have our own long term
resident antagonist that keeps everyone on their toes with his wit and sometimes too often true interpretations of the facts surrounding ADGI. If Hubert decides to take his clan of Swahili nuclear reactor
cleaning ladies and start a new brokerage house on Jupiters 3rd moon,you can be the first to apply for his job. 'Till then...??
Good Luck...John

BTW...if ya see a seedy lookin 'lil Mexican drivin a ranchero with boxes of out-dated Midol in the back,I wouldn't step into the street.



To: Ditchdigger who wrote (5703)3/14/1998 1:03:00 PM
From: Jgilbert  Respond to of 9569
 
Microsoft started as a penny stock. It went public at 2,100 pennies and never went below that.



To: Ditchdigger who wrote (5703)3/14/1998 3:25:00 PM
From: Nick)  Respond to of 9569
 
ADGI _ _ shareholders _ _ ADGI

First : HELLOOO EVERYONE!! This is only the 2nd time I post
here and I will not post many messages in the future because of
lack of time. I would like to share with you why I think ADGI has
been going up recently and why I think it is legitimate to hold
and increase a long term position. I also think that it may be legitimate to daytrade this stock due to its excellent volatility (it may not last
for a long period). I use Bloomberg, Reuters, ADP and Internet.

1) authorized number of shs : 200MM.

2) current number of outstanding shs : 197MM

3) the dilution factor is priced in

4) their first revenues ever : 3rd quarter of 97 ; $25'300 (!)

5) Western Africa orders alone should represent for '98 between 3-5MM US$ of revenues. (->see recent and future press releases).

6) delivery of their first dengue kits to brazil will start within the
next 30-60 days. Expected gross revenues for '98 : US$ 3-5MM min.

7) Expected revenues from their telecom business for '98
(after a testing period of 3-6 months) : US$ 2-3MM. Initilal number
of actual customers : about 200. This product is generating great
interest in emerging countries for its low operational cost.

8) Important mention : the revenues extracted from the
sale of dengue kits and telecom products are estimates only.
Revenues extracted from the sale of Pharmaceutical products to
Western Africa are effective and will be reported as such in the
next 10Q.

9) The change in revenues for the last quarter of 97
and the first of 98 to be published should be huge

10) In order for this company to be successfull, it will be critical
to keep on the favourable momentum of increasing orders among
their main product clusters

11) Do not underestimate the potential of profit resulting from the
sale of testing kits in Brazil. The country is huge and the topic is
very hot. Demand could grow rapidly and a shortage of supply can not
be ruled out. I hope they are ready to meet consistent demand.

12) I will publish here next week the expected gross margin for their different sources of revenues

13) I scan every day a lot of microcaps and they almost never match
the following criterias : a) liquid and trade every day b) acceptable
bid-offer spread c) more than 1 employee d) they pick up the phone
e) they are not in ch.11 nor ch.7 f) fully reporting g) with a business
plan h) with 1 or more -real- product i) with no -big- convertible
debenture outstanding j) with revenues...Don't ask for positive
earnings per share because by then it is no longer a micro cap.
ADGI matches all of them and that's why I may stick to it until I feel
growth starts to decline.

Best regards to all and have a nice week-end!!
Nick.

p.s. : when you buy a distressed bond, its annual yield is in general
between 30 and 40%.