big sell order watch it fall further , page-3

Apologies for not being around to respond to queries or concerns about my Admerex analysis. I was skiing and away from all communication for the past two weeks.

I absolutely appreciate your concern about ADL's revenues and expenses. If you exclude the revenue gains from the Temenos share price increase (which will be realised at around $8 -10M on the balance sheet AND the P&L) , there is strong likely hood that the company's annual sales revenues of around $4 - 6 million (my estimate) for a full year will be less than the company's running costs of around $8 - 9 M (again my estimate) leaving a modest loss.

That's OK , though, as the company is growing strongly as well as restructuring to exit low margin businesses and cut costs. And given the buyback and gains in the temenos share price it suggests it has decent cash flow at hand.

Given that this company does not provide any revenue guidance when announcing new contracts, I had to estimate the contract values based on my business experience etc, and I forward forecast their costs using similar methods, tools and assumptions. If you want a copy of the analysis, you are welcome to contact me via email. scgay at netspace dot net dot au

This stock is definitely not for everyone. For me, though, I am confident that the minimum price this company is worth on a net asset backing (ie NO premium at all for growth in future cash flows) is somewhere between 9 and 10 cents, so I can't see too much downside risk now that the current value of the Temenos shares have been brought to the attention of the market. Only the release of the full annual report will reduce the investment risk and (hopefully) prove the upside that most of us think is there waiting to be captured.

Hope this helps.

As per my other emails I am a holder of Admerex and therefore have a baised perspective. As such, one should conduct their their own analysis and draw their own conclusions on purchasing, selling or holding ADL stock.