ado research, major re rate on the way

hi all and merry christmas,

i guess there are more new holders in this coy shown by the re rating and interest in the market. it will be great if ppl can contribute by looking/digging for info on ADO. it offers a more diverse viewpoint and hope all benefit from it.

today we look at the cash position of ADO and some of the milestone in 2010 this far.

qtr ended 30 sep 09
1. cash reciept = 96k
2. net operating cash flow = 558k
3. cash at end of qtr = 414k

13 jan 10
ADO signs licensing agreement with Bangs lab

qtr ended 31 dec 09
1. cash reciept = 63k
2. net operating cash flow = 543k
3. cash at end of qtr = 1,065k

qtr ended 31 mar 10
1. cash reciept = 60k
2. net operating cash flow = 643k
3. cash at end of qtr = 1,614k

14 jul 10
ADO announces agreed terms with Merck

qtr ended 30 jun 10
1. cash reciept = 331k
2. net operating cash flow = 402k
3. cash at end of qtr = 1,429k

qtr ended 30 sep 10
1. cash reciept = 44k
2. net operating cash flow = 778k
3. cash at end of qtr = 2,295k


increase in cash position was due to ongoing options conversion during the period


the 5 products from Bang's lab (Pro mag bind it) and Merck's (estapor) has therefore been in the market for about half a year or so.

with the 15mil options at 6.5 expiring feb next year to amt to 5.2mil cash to ADO. ADO should have a healthy cash position come feb of about 2.3-0.8+5.2 = 6.7mil

at current higher burn rate (due to more travel commitments by ADO representatives to overseas labs to provide proper technical expertise and ensure positive results) of 800k. 6.7/0.8 = 8 more qtrs from march on. this is all without any cash reciept from the 5 marketed products or more.

so all in all, the above calculation have shown that ADO is in a healthy cash position with a fairly minimal risk of further capital raising/dilutions till end of 2012.

it is also important to note that ADO technology is already fully developed/established and does not require further cash injections.

since listing few years back, ADO has gone for 2 CR, comparing that to yearly CR by some mobs, coy directors imo are honest n decent and have SH interest in mind.



i'm keen to get more info about price of these beads and the volume likely to be used if there's any one who has this area of technical expertise or able to research something on this.


director mentioned before too that he targets ADO to be cash flow positive by middle next year. assuming this is accomplished even by the end of the year, it will really really be wonderful.

at current cash burn of 800k per qtr. it means that the products within a year or so out in the market, are able to rake in ~3mil per annum. imo, i will be impressed with a 2mil pa royalties.

rough cal

2mil x pe of 20 = 40mil
40/800mil (shares) = 5c

i'm not sure if pe of 20 could be applied to ADO but even at a pe of 10, that would roughly be 2.5c increase on top Mixngo technology intrinsic value and coy cash position.


2011 will be interesting for ADO yet again. will delve more into other aspects of ADO sometime again. esp the main re rating avenue = more signatures.

well merry xmas to all again.