patience

Hello all,

After some research I conducted, AVD seems like a very promising company.

FINANCIALS
AVD's financials are stable with a current ratio of 1.6 meaning that if all there current debts were called in today they would be able to pay them off easily. Also, as stated in their preliminary report, nearly 80% of their total liabilities (mainly being interest bearing loans 6.6M) will not fall due until the 31 Dec 2014, meaning they do not have any immediate financial obligations that need to be met. This will allow AVD a great deal of flexibility. AVD also has 2.5M in cash as well as a 40M line of credit (for purchases inside the united states). With a credit line of that much and strong cash reserves this puts the company in a good position. AVD in the short term (1yr) is a very stable company, with the acquisition of an asset or assets the company's long-term stability will become more apparent.

FUTURE ACQUISITION
It is only a matter of time until AVD makes an acquisition, unfortunately we don't know how long that will be but IMO I think in the next 1-3 Months or sooner they will make an announcement. Once an acquisition is made I have no doubt that the SP will start to move. Just look at Palace Resources (PXR, who are the 4th largest share holder in AVD) after they made intentions to acquire a coal asset in Indonesian they SP went from trading at 1c to 4c over the September to October period. This could very much happen to AVD, granted it is not at all guaranteed it is still highly possible depending on the quality of the asset. http://203.15.147.66/asxpdf/20110131/pdf/41wh0w6pm7v2dk.pdf
http://203.15.147.66/asx/research/companyInfo.do?by=asxCode&asxCode=PXR

Summing up I think people should be patient and wait out at least another 3 months and by then hopefully we will see some activity.