ADO has weathered the storm thus far and is now back at the same level as where it was pre XAO meltdown. I strongly recomend people who are looking for one out of the box, have a look at this presentation which was released by the Company in January.
For those of you who cannot be bothered reviewing the details or the science behind the market impact potential that the Mix&Go technology has, I suggest you read Pages 10-17 of the presentation. Page 17 outlines briefly the Companys business model. Look carefully at the potential market numbers at the bottom of the page.
Note: this company will be extremely low on overheads, as it is selling technology and its costs are therefore limited to Administration and Business development overheads.
The Company has so far only announced an agreement with Bangs Laboratories which is a Bead Manufacturer. Note from the presentation the Royalty market from the Manufacturing Sector is limited to between $5m-$10m per year.
The Company has also indicated that it has been in discussions with participants in the other market segments. So if ADO were to announce it had signed up some of the major players within the other market segments, what do you think the share price might do?
Whilst ADO has been effected like most other stocks by World Markets recently, it is still trading at the same level it was when the XAO reached its peak in mid April this year.
So although liquidity has been an issue recently, I would suggest it may be time for the more astute speculators or investors to start breaking out the calculators on this one.
I like many of you have used the past month to evaluate my longer term holdings. ADO is one stock I will not be letting go of until the Company starts to realise its potential.
The stock still remains rather iliquid and is therefore prone to volatility. I suspect this will be resolved in the short term.
IMO DYOR
ADO Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
