Can't disagree with you on that one! I know ADG fairly well and...

Can't disagree with you on that one!

I know ADG fairly well and all I can say is that 50% of EBIT is reliant on tyre sales that are sourced from other suppliers' dusty warehouses.

This situation has arisen over the past 2 years due to manufacturing shortages but will definitely not continue past 2009. Slim GP margins have already contracted in last year or more so there is a hint of what's to come.

Basically a procurement business so 5 x EBIT seems extraordinarily high considering mainly goodwill, short earnings history at these profit levels and risk factors too numerous to list.

I'm sure the promoters (including Alan Bond's son!!!) will ditch this before the ADG management even smell an end to their escrow period. At least they will pocket ~$8M at least!!