ADA 2.00% 49.0¢ adacel technologies limited

Yeah I think Adacel directors have some doubt about the sizing...

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    Yeah I think Adacel directors have some doubt about the sizing of the business going forward. If Adacel lose their court battle with Adsync, then there is a product out there that mirrors the Adacel offering and, presumably, does it a little bit better.
    The problem for Adacel is that the product is relatively easy to copy and then to replace as it's quite visual and stands alone. An organisation can contract to another provider, run it parallel for, say, a month or two to ensure there are no issues and, then, turn the Adacel service off.
    With this sort of software application, it's relatively easy to pick up a new customer but just as easy to lose one. Very different to HSN, GTK, TNE etc where the software becomes integrated inside the everyday workings of the client and a change to service provider is very difficult and quite risky. These companies gain their clients by buying out competitors as it's almost their only way to grow.
    I used to own ADA and sold as soon as they reported their conflict with Adsync. I was also concerned about some of the reporting behaviour of the Board. I wouldn't consider ADA again until the conflict is resolved in ADA's favour.
 
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