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stervc

01/14/09 9:43 PM

#10730 RE: WOOHOO #10675

WOOHOO, with ADL...

Actually, that was an awesome selection of ADL at .78 per share. Here's why...

Within the PR below, ADL announced...
http://biz.yahoo.com/prnews/081117/lam061.html?.v=101

...Gross profits for the third quarter ended September 30, 2008 increased to $4.9 million compared to $3.6 million for the same period in 2007. The Company's consolidated net income for the third quarter ended September 30, 2008 was $1.569 million or $0.10 per share (unaudited) compared to consolidated net income of $383,108 or $0.03 per share for the same period in 2007. ...

That is huge! Now keep in mind that the above numbers are not derived from "potential" but instead it's derived from "actual" valuation.

So now let's see where ADL should "actually" be fundamentally trading.

If you go to the website site below, you will see that ADL trades with the Industry called... Medical Instruments & Supplies... under a P/E Ratio of 29.70 to represent the growth rate for the industry of stocks of which it trades:
http://biz.yahoo.com/p/520conameu.html

With a .10 EPS (Earnings Per Share), ADL should fundamentally be trading at...

.10 EPS x 29.70 P/E Ratio = $2.97 per share

Now throw in another quarter to equate to a positive 4th quarter and I think one could see how still undervalued ADL is.

Again, this is a quick fundamental perspective to help reflect where ADL should fundamentally trade.

v/r
Sterling