Adamant DRI Processing and Minerals Group (ADMG)

[Potse]

Traderfan...change in control, legacy share valuation......

Looks like there is a change of control in the 10q today. Finally. You still in here? What‘s your take?

I still have all my full position in the ADMG shell (a little over 800K shares at an average under 11.9 cents). The legacy share valuation at the current price of 6 cents is extremely attractive, in my opinion. Over on the other board I made this comment back in August on why I liked this shell so much.........

But focusing on the current numbers/valuation, the upside potential from this 5-cent level is pretty hard for me to ignore. Using the full 16M shares as a legacy base number gives ADMG around an $800K legacy valuation at the current 5 cents. There usually is the potential for decent money to be made when you can buy a relatively attractive shell at a legacy valuation under $1M. What makes ADMG even more interesting/attractive to me is the possibility of Eastland selling some or all of his position to the RM target. In that best-case scenario, ADMG's legacy valuation at 5 cents could be under $220K.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169744127

Depending on how the $50K debt on the books gets handled, I think there is a good chance that the final legacy share count here is going to be around 4.3M shares. I don't know what Nicholas Parks has planned for this shell or exactly how everything will get structured and ultimately play out here, but I really see no reason why the ADMG shell should not be able to achieve a bare minimum of a $1-2M legacy share valuation at some point.

Interesting to note: Back in 2017, Nicholas Parks purchased around 10M shares of PRKA from Larry Eastland for $510K. So that probably explains how these two parties got together on the ADMG change in control.

From everything I have seen, Nicholas Parks appears to be an extremely hard worker and a likable kind of guy. Basically built his businesses from nothing. I would assume he is planning to put at least some of his existing businesses in the ADMG shell. He also recently started a business incubation company and has some interest in venture capital.

The pinball industry might initially seem somewhat lackluster, but the largest company in that space (Stern Pinball) says they see 20-30% annual growth for the foreseeable future. Stern had to double its facilities this year to keep up with demand and expects to increase its employee count (currently 450) by 10% annually.......

https://www.costar.com/article/1684457330/worlds-biggest-pinball-machine-maker-expands-after-bump-in-demand

I don't how much revenue Nicholas Parks' first company (The Pinball Company) is currently generating, but this article below says 2019 revenue was around $9M.......

In the first year of the company, Parks anticipated he would sell 300 to 400 machines at roughly $3,000 each. It would yield around $1 million in total revenue. In reality, the company managed to double its predictions, bringing in about $2.5 million in revenue. “The market was much bigger than I thought, and I was able to reach way more people than I thought I could,” Parks says. Around this time, his wife, Brooke Parks, joined the company to help with the bookkeeping, logistics and customer service duties. “It was definitely more chaotic,” she says. “We were really learning as we went.” Parks says that Brooke has now taken over the majority of day-to-day operations, while he mainly sticks to the creative and marketing side. “She’s a believer and has been there the whole time,” Parks says.

Fast forward to today, the Parks family’s business brought in about $8 million in sales during 2018 and has already achieved 10% growth in sales in 2019. They now use a delivery service for long-distance orders, while still personally delivering their local orders. They subcontract 300 technicians nationwide to help service the machines and employ three full-time technicians who fully refurbish old machines. As for the future, Parks says they’ve always toyed with the idea of breaking into the pinball machine manufacturing market, whether that be merging with an already established manufacturer or starting their own. Additionally, Parks says they’ve discussed getting into the parts manufacturing business, in order to help supply their customers with spare parts to keep their machines up and running.

https://www.voxmagazine.com/magazine/nic-parks-silverball-profile/article_8373b04e-ed6d-11e9-8323-879f1c74fba7.html

This is the most recent radio interview with Nicholas Parks (March 2023). He mostly talks about Lakeside Ashland and the business incubator......

https://939theeagle.com/audio-parks-entertainment-founder-nic-parks-discusses-lakeside-ashland-shiloh-and-level-up-on-93-the-eagles-ceo-roundtable/