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Microcap & Penny Stocks : ADTC -- Ignore unavailable to you. Want to Upgrade?

To: Ralph Bergmann who wrote (278)	5/22/1998 3:49:00 PM
From: Tom Cooper	Read Replies (1) \| Respond to of 329

Ralph, You are most welcome. I also had some questions regarding the acquisitions. Kidami apparently owes a large, USdollar denominated debt to DNA, and are basically being taken over because they can't get enough dollars together to make the payment. Although controlling interest in DNA was purchased by ADTC, I think that this is better thought of as a partnership because neither of the partners is in the same business as the other, but they understand each other's business and each can achieve considerably better results by cooperating with the other. The "acquisition" really just defines how the profits from this cooperation will be divided, and I think that ADTC's ticket to the dance was actually quite a cheap one. It would take years and years to establish the customers and connections that DNA and Alex Boxall have and it spreads ADTC's risks over quite a large part of the world. I suspect one of the reasons for the differences in the DNA numbers before and after might be differences in accounting standards between Spain and the USA. Depreciation allowances, when revenue is booked (at the time of the sale or at the time of payment), currency fluctuations, there are a lot of legitimate and perfectly honest reasons. ADTC has a history of applying only the strictest and most conservative accounting treatments so I am not surprised that DNA's final numbers were somewhat deflated. Hang in there, Ralph. From what I can see it is an excellent company and one of the most underpriced stocks imaginable. Tom