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Microcap & Penny Stocks : ADOT - BIOMODA: Profitable Technology with Purpose -- Ignore unavailable to you. Want to Upgrade?

To: Brad Morris who wrote (1232)	7/6/1998 9:13:00 PM
From: STOCK DOC	Respond to of 4650

What the heck is going on with ADOT??? I got in at around .27 and I'm not sure this stock will ever get back to that range...... Does anyone have any concrete comments to make me feel better? Or should I just keep reading the daily BS that keeps getting posted?

To: Brad Morris who wrote (1232)	7/6/1998 9:38:00 PM
From: Kurt N	Read Replies (4) \| Respond to of 4650

>>How will ADOT benefit from Biomoda if its not a public company? Dividends?<< If one is just talking about the bottom line on ADOT's financials, dividends are not necessary. ADOT owns enough of Biomoda that for the purposes of accounting, they can use the equity method. Summary of equity method --------------------------------------------------- 1. Must own a substantial amount of shares, and enough to exert considerable influence and/or voting power (if push came to shove). ADOT owns a substantial amount of Biomoda 27%. ADOT and 1 or 2 Biomoda insiders (even if the other insiders and everybody else were against) could easily get 50.1% 2. Biomoda shares are considered an asset (makes balance sheet look good. Biomoda profits increase value of asset) 3. Quarterly increase or decrease in the value of that asset is recognized as a gain or loss. This translates into earnings for ADOT. Assuming a contant P/E ratio, increased earnings translate into an increased stock price for ADOT shareholders. ------------------------------------------------------- ADOT has first rights of refusal for doing the electronic flat-panel displays that are a part of the Biomoda equipment. ADOT earns profits on the displays that it sells to Biomoda in addition to other display applications (billboards, etc.) Biomoda's profits will get reflected in ADOT's bottom line on financials. Alternatively, Biomoda gets bought out by another company for say $200 million (which is low). ADOT owns 27% which means it would get .27 * 200 million = $54 million. Maxinum number of authorized shares is 20 million. $54 million / 20 million shares = $2.70/share Kurt