During this period of high market volatility and credit...

During this period of high market volatility and credit uncertainty, a few points to keep in mind re Adacel:

(1) Adacel is completely debt free.

(2) Adacel has plenty of cash and is continuing to generate cash ($11mill before the buy back started, probably around $10mill now).

(3) Most of Adacel's revenue comes from long term government contracts which are unlikely to be effected by a US slowdown. If anything, govt contracts (from the FAA and US military) tend to increase during periods of economic slowdown.

(4) At the recent AGM, management said that Adacel will record a much improved result this FY over last FY.

(5) US analysts are tipping technology as one of the few growth areas of the US economy in 08. For this reason, technology shares in the US are expected to outperform the market.

(6) Adacel's businesses would be highly complimentary to a company like CAE. It is my personal opinion that if Adacel's ATCiB product sells well over 08, CAE will make a takeover offer for all of Adcael. (As the share buy back continues, Adacel's top 20 will soon own more than 80% of the company).