David Haselhurst in The Bulletin’s ‘Speculator’ column, published today, gives and extremely positive rundown on the prospects of the ASX-based, worldwide specialist software company Admerex (ADL).
Based on an anlysis he has made himself familiar with, Haselhurst concludes ADL has a “net asset backing of 9.1c a share”.
This “suggests a potential value of 13.9c to 18.2c a share, based on a possible earnings projection for the full year to June 30, 2007, and using a multiple of 16.8 times earnings/share, which is the sector multiple for software and services used by Aspect Huntley Research”.
That’s double to 2.5 times the value of the stock at yesterday’s close.
He points out that ADL is presently embarked on a buyback of 18.2 million of its own shares – usually a sign that the directors know a company is under-rated.
Haselhurst points out that the company’s principal, Kim Goodall, had previously grown Swiss-based specialist software company Temenos Group into a “a turnover of $US146m and 450 clients in 40 countries”.
As of 2006, ADL owned Temenos shares worth $6.2m. “Since then, Temenos shares have more than doubled.”
On top of all that, ADL earnings are expected to increase in the present half.
Looks like another jewel from The Speculator.
ADL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
