hi all
I think everyone is probably unhappy right now, we have lost around 30% from the high recently and it seems it's largely down to the seller (distressed or not), I thought it was a good time to put some fundamentals down.
We are trading on a historical pe right now or 23, going forward even on the most conservative estimate that goes down to a current pe of around 18.5, but we know ADA has a history of under promising and over delivering on results, so lets assume they come in with an eps of just 15c and not the 12.8 a broker currently has out there, that then puts us on a current pe of 16, which, when this has historically traded on a existing pe around 24 or so is cheap, couple that with a forward eps for 2017/2018 of at least 17c a share, again we come down to 14, on this growth pattern, in a market where we are very strong and have little competition, that's too cheap.
I don't know when the seller will be finished, we can't control that, but I do know that this right now is very attractive as a buy, and we have house broker giving us a share price target for this year of $3.75, on top of this, there were potential project wins that were delayed from last year that are expected this year, which will again boost bottom line.
So even though this is pain (albeit pretty short term in the scheme of things), in the long term I do see this as a great place to accumulate more (this is my opinion).
Cheers
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