ADA 1.01% 50.0¢ adacel technologies limited

important 55mill dollar faa contract , page-5

  1. 292 Posts.
    ADA is the first share I ever brought, and Im in ADA again as I think it'll set to run any minute now. Lets focus on the fact here (correct me if Im wrong):

    Last FY 6/07 their
    revenue = $34M
    NP = $2M
    NP Margin = 7.4%
    6/07 PE = 21.43

    This contract ALONE will add $55M into their revenue, which means:
    Revenue = $55M
    NP margin (Est.) = 7.4%
    NP = $4.07M
    PE = 13.5
    Yes just this contract alone will give ADA a PE of 13.5, if you include the other contracts they already have the PE is somewhat lower.

    This is a growth stock, and as i recall they took a big hit in their P/L last year for future gains (sorry but cant remember).

    GL all, this is not a speculative stock and is undervalue, I don't why it hasn't gone for a run yet.
 
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