Ann: Quarterly Activities Report and Appendix 4C, page-6

If you are concerned about a potential recession then you need to look at companies which have large contracts with Government agencies. I believe ODA does fit this bill if I am not mistaken as they have been building contracts to supply Govt agencies over the last year.

Their management is turning the business around while growing revenues. Increase of 59%.

Positive cash flow this quarter was $1.666m but included refund for taxes and Govt grants. This would have reduced to $759k on a normal basis but a turn around increase of about $1.229m from the previous quarter.

In a tough economic environment, their margins are being maintained reasonably well. 4295 / 1968 was 118% against 6844 / 3316 being 106% therefore some slippage but a fantastic result. There might be some methodology within their contracts to obtain higher prices going forward which might offset the reductions going forward.

They have reduced admin costs by 100k this quarter which increases their bottom line for the reduced margins.

Overall this is turning into a good company and likely to improve going forward. It is a nice price level at present too.