Last weeks news that the company had agreed terms for a non...

Last weeks news that the company had agreed terms for a non exclusive supply agreement with Merck failed to inspire the market, probably because the company chose to place emphasis on the expectation that the immediate financial returns were not expected to be material. Although the announcement was in keeping with the company's tradition of under-promising and over-delivering I think this point could have been written in a more positive way such as "Whilst the financial returns from the supply agreement are not expected to be material in the immediate future, recurring revenues are expected to be generated over the medium to long term." This type of wording implies that the agreement will generate revenue growth rather than creating doubts about the agreements significance in terms of improving the bottom line. Anyway I believe that the market has underestimated the significance of this announcement and where ADO is in its development cycle. Further agreements and a ramping up of sales of the Mix & Go product are likely to see interest increase steadily in coming months and quarters. Then there are all the potential applications in other industries like paint for marine applications to prevent barnacles from attaching to surfaces. Hopefully the company will now commence a marketing campaign to promote the future potential of this business, which, in my opinion, appears to be very bright. I remain a strong believer in the company's intellectual property and will continue to maintain a strategic share holding for the longer term, whilst looking for additional trading opportunities in the short term. News Due: Further licensing agreements for the company's Mix & Go product with bead manufacturers, research organizations or IVD pathology suppliers. BRR interview today at 9:00am. Product launches from the licensees. Price Target: The price briefly fell out of the up-trending channel on Friday but managed to finish the day back inside, with a nice hammer. If the company manages to put a more positive spin on the licensing deal with Merck this week then we could see confidence return and prices test the top of the channel at just over 7 cents.