Australian (ASX) Stock Market Forum

ADA - Adacel Technologies

Jump to new
E

emu2

Joined
26 March 2005
Posts
17
Reactions
0
It's pleasing when some of your "punts" move quickly North! . Have suffered patiently with MST, CCE, & VCR but NMS & now ADA are restoring my faith in basic research. I like running free on comfortable holdings. Been far to rare an experiance lately. We lose on some very nice to win on some.
Now come on the afore mentioned.C > e.
 
Re: ADA following NMS road?

Got into ada after a healthy retrace...Should see some financials in the report out today or tomorrow. Then I expect it to get the strength to power onto the next move....
 
Re: ADA following NMS road?

and of course as far as nms is concerned, they did conveniently forget to mention income from 1 or 2 jobs in the last quarterly report - maybe holding it for the next one...hmmmmmmmmmm...nice one clive.
 
Re: ADA following NMS road?

emu2 I hope you're still holding as Adacel has just released their half yearly.

For the first time since their restructure Adacel has a positive cash flow (of $3.95mill).

I expect more contracts to be decided upon soon and best of luck to adacel, certainly with their superior product you would think that they deserve them. all the contracts they have won over the last 6 months is testimony to this.

Further improvements can be expected in the june half!!!!!

This is an excellent result for Adacel - well done!
 
Wow it's been 11 years since someone posted in this thread.

ADA is on my watch-list as price consolidates. I have been interested after the price "spring" (see chart). Price is slowing gaining momentum towards the BO level (2.55). In the context of the up trend this current corrective movement has been very shallow.

ada2604.PNG
 
I hold ADA, from a FA point of view its certainly been in a price range that offers great opportunity to accumulate at a nice discount. Strong tailwinds should drive impressive growth over the next few years and its a tightly run ship, very low debt and impressive stickiness of clients.
 
I recently just got in, sold out of DWS which paid a great dividend but didn't have any growth.
The stock looks fairly cheap compared with other software listed companies like ALU and APX.
 
fanger said:
I recently just got in, sold out of DWS
Click to expand...

LOL! I also got out of DWS, i made a good capital return, but I felt the business had lost direction and made some poor decisions so I took my profits.

ADA have a terrific balance sheet and appear to be well managed, the market was disappointed they were unable to secure a contract with NASA that had been a possibility. I do think you need a fairly long term view with ADA, but there is a lot of aging equipment and under-trained staff in the air controller space and sooner or later I think there will be a significant upturn in the industry. (or conversly a lot more plane crashes!!)
 
I've put ADA back into my reversal watch list.
The monthly chart shows the abc corrective pattern. Price is now where I thought it may find support (ab=cd). There's no setup for me on the weekly chart and will need more time. The line on the daily chart could be placed 1.90 - 2.00 depending on your preference.

I look at all three time frames so make sure I see the bigger picture.

ada1106.PNG
 
peter2 said:
I've put ADA back into my reversal watch list.
Click to expand...

Obviously coming from a totally different approach, but I am adding to my holding this morning. I have some cash to allocate from dividends, and as is my strategy, I look to add to the position I feel is the highest conviction, best value case in my portfolio. Currently that is ADA.
 
galumay said:
LOL! Popped 23% today, expect an announcement in the next few days!
Click to expand...

I'm not sure this is the announcement you were hoping for.
FY2019 Earnings Guidance

Melbourne, July 1, 2019 - Since April 1, 2019, the Board and management undertook a comprehensive review of all aspects of its business. As a result of that work, the Company provides the following updated outlook for FY19 and guidance for FY20.

The Company anticipates a loss before tax in the range of $1.7 million to $1.9 million for FY19 compared to a profit before tax of $10.2 million for the prior financial year.
Click to expand...

Ouch! ADA down 34.45% to 39c so far today.

What's a little surprising to me is that the company has been buying back its shares since June last year and has spent $2,077,285.59 buying back 2,173,778 shares. That's an average of around $1 per share. When was management aware that ADA's financial performance had deteriorated to this point? It seems like poor capital management to be buying your own shares back against a backdrop of declining revenue.
 
greggles said:
Ouch! ADA down 34.45% to 39c so far today.
Click to expand...
Presumably there will be a bit of a bounce in the short term at least but it does raise questions when the company's been buying back its own shares at a price that's now ~2.5 times their market value.
 
greggles said:
I'm not sure this is the announcement you were hoping for.
Click to expand...

Obviously not! The optimist in me thought maybe the trading halt was because the 25% spike suggested that good news had leaked!!

I think ADA is the classic case of a good business being destroyed by incompetent management. Instead of throwing excess cash away in special dividends and buybacks, they should have spent it sorting the underlying business issues out.

I was going to take a tax loss on it when it spiked 25%, but scared myself with the thought that it was insider trading on upcoming good news.
 
galumay said:
I think ADA is the classic case of a good business being destroyed by incompetent management. Instead of throwing excess cash away in special dividends and buybacks, they should have spent it sorting the underlying business issues out.
Click to expand...
It's a red flag when management are trying to manage the share price (the buybacks) rather than managing the actual business. :2twocents
 
ADA may get a boost this week after it was given a bit of a ramp from an "analyst" at broker Taylor Colison.
From Stockhead in Evil Murdoch Press
Taylor Collison has also rated Adacel Technologies as an Outperform, despite a disappointing first half.

Adacel deals in air traffic management and air traffic control simulation in the global civil and military aerospace sector.

It has products and services including air traffic control simulators, air traffic management, a voice-activated cockpit system, speech recognition, support services, ATC environment, airport driver training and homeland security.

According to the broker, ADA has the opportunity to double its annual revenues over the next 18 months based on the award of six tenders.

Approximately 20 per cent of ADA’s contracted base is up for renewal over that same period, while nearly half of the revenue base is underwritten by a 12-year contract still in its first year.

“We view ADA as an asymmetric bet on tender success with limited downside risk,” said Taylor Collison.

On the current $US30 million revenue base, ADA generates around $US3 million in normalised net profit.

“We think incremental revenues will contribute 25 per cent EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin without any material increase in SG&A (selling, general and administrative) costs.”

The broker says the full effect of ADA’s contract wins will only start to flow through into the financials in FY25, due to the implementation requirements involved.

“ADA is fairly priced based on current operations, but we see option value for tender success.

“We think ADA will succeed on at least one of the six opportunities, driving operating leverage and a material earnings improvement.

“Based on the above we maintain our Outperform,” said the broker.

Taylor Collison did not publish a target price on ADA.
Click to expand...
One can only assume there is someone who wants to offload a heap to the punters.
Mick
 
I have entered the ADA in the 2024 year long Regatta
I like the way she is handling these waters

Sailing the ADA --------------One WEEK at a Time---------------------------------&---------------------One DAY at a Time
1704079031135.png

Salute and Gods' Speed
XYZ Yacht.GIF
 
Top