Hi botlow.
All of my investing is initiated on insider trading and then doing research, looking at the fundamentals, and going through the filings. So I don't just go buying anything just because the CEO goes and buys some shares.
I first learned of ADGL back in August when one of the reports I use identified it based on prior insider purchases and then obviously the shares fell. Going through all of the filings, I liked what I saw. The obvious issues were the unexpected events last year, and whether the company had sufficient access to funds to keep things going. As I dug into the filings and the folks running the show I became very comfortable with it. As coincidental as it was, within minutes of when I purchased my first batch of shares, company announced CEO passed away. I just kept buying from that point.
I am not an expert in the industry, however I have good familiarity and have a technical background. I am nicely invested in CCUR which is in a very similar part of the market. They are one company I can see that would be a great fit for ADGL and potentially buying them. I also have a position in SOFO - another part of the video sector. I think that during 2015 and beyond, video is definitely the place to be - there have been great strides and things are still accelerating at this point.
My belief is that any purchases of ADGL shares below 15 cents is just free profit. You've probably also looked at the SEC filings surrounding the financing provided by management - their notes are convertible to common stock at 15 cents/share...just like their stock options. If they don't get the stock back to at least 15 cents, then they won't get to convert and they'll just get back their money with the low interest rates and their options will be worthless. Reviewing the background of these guys, and seeing the history of their last success, I am absolutely certain they have similar plans here - they are looking for a homerun - they want to be able to convert all those notes and their options at 15 cents/share. I like when I can buy below the option strike price for management - because they are going to work their tails off to get the stock price up over their exercise price.
Anyhow, I think that there are good things on the near-term as well as longer-term horizon for ADGL - it's just a matter of patience. Based on comments from the CEO, I think we should be seeing bottom line profitability very soon - if not this quarter, certainly next quarter. I think once they post a profit, no matter how small, it's going to be bringing many more investors to the table because they will be more comfortable with the company at that point.
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