JayinaussieYou said "Roche looks to be the likely insider to buy...

Jayinaussie

You said "Roche looks to be the likely insider to buy products from ADO"

Although I understand your reasoning I suggest that almost all major players in the diagnostics industry that use the targeted applications will likely candidates to buy products from ADO.

The game here is simple. If Mix&Go is as superior as the laboratory tests have indicated over its competition and as quoted is much much cheaper to produce and yields shorter diagnostic timeframes, then those that don't use it will invariably labour under a more costly less effective set of products.

Bangs was the start. Whoever is next is merely another revenue rung in the ladder. The Company has indicated it is in negotiations with a number of players within the industry. With each signing comes added pressure on those who stand to loose market share.

Although these first couple/few deals are ground breaking in terms of projecting a launch into positve cashflow territory, they are merely the tip of the iceburg.

Remember this Company has a Royalty based Revenue structure and the the majority of its Operating outflows will remain constant (except during any expansion programs or business development). The result is extraordinary returns to the bottom line in the event of a succesful market penetration.

Essentially in time the Company should become a cash generating machine.

Should Mix&Go achieve the market penetration that ADO are hoping for I would suggest to you that your $100million market cap target is many many many multiples short of its potential.

For those serious investors looking for long term, large scale growth potential, I suggest you immerse yourself in research about this market and position ADO aim to take in it coupled with its other bountifull industry applications.

Another important thing to look out for is the order in which these customers are signed up in. Although good for publicity, signing the top players in each market sector is often not the most profitable path for the longer term. Signing players numbered 3-5 creates the potential of savaging the top players market share and thus decreasing their ability to drive a harder bargain.

I am supremely confident of the upside in this stock. I am also supremely confident that subsequent deals will continue to revalue the Company.

IMO
DYOR