Working off $10 million in revenue per year $2.5 million in costs per year Tax is a tricky one but id say ADO would have a load of tax deductions to write off and past losses to write off also so lets say total profit of $7 million.
$7 million and a conservative PE of 20 for this industry gives us a $140 million market cap or 20 cents per share based on income alone, then add on future potential which is huge and you can see where i am getting the 20 cents plus estimate from.
A PE ratio for companies in the same industry with less future revenue potential start from a PE of 20 and go as high as 50.....
Just back of envelope numbers so dont hold me to it but id say when we get the next deal signed off quite a few will follow in quick succession.
ADO Price at posting:
8.1¢ Sentiment: LT Buy Disclosure: Held
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