WE BELIEVE THAT @ CURRENT LEVELS ADG HAS THE POTENTIAL DURING THE NEXT 6 QUARTERS TO APPRECIATE 200%-300%!
WE HAVE BEEN LOOKING FOR A LONG TIME FOR A DEFENSE PLAY THAT HAS BEEN OVERLOOKED AND OUT OF FAVOR!
ALLIED DEFENSE GROUP (ADG) www.allieddefensegroup.com www.mecar.be Sept 03, 2007----current price of ADG--$4.50 The company is a diversified international
defense and security firm which develops and
produces conventional ammunition marketed
to defense departments worldwide; the
company also designs, produces, and markets
sophisticated electronics and microwave
systems: in addition manufactures battlefield
simulators and other training devices for the
military.
The Mecar S.A. division( meat and potatoes of
the company) produces advanced
conventional medium to large caliber
ammunition and sophisticated weapon
systems . Complete spectrum of rounds range
from 25mm to 155 mm and beyond. The
company
is also a world leader in bullet trap grenades
and a complete line of hand
grenades.
WHY A MAJOR TURN-AROUND IS AT THE
COMPANY'S DOOR STEP!
1. RESTRUCTURED AND RE-
CAPITALIZED
2. SIZABLE BACKLOG--WAS $59 MILLION AS
OF THE END OF JUNE 07--THEN A NEW
CONTRACT FOR ANOTHER $170 MILLION-
YIELDS A $230 MILLION BACKLOG TO BE
COMPLETED DURING THE NEXT FEW
YEARS!
ACCORDING TO THE MANAGEMENT:
ADDITIONAL CONTRACTS ARE IN THE
WORKS!
3.Improved financial team
4.completed a multi-year restatement,
implemented improved internal
controls
5. resolved all outstanding disputes with Note
holders
6.divested a chronically unprofitable sub and
will continue to divest additional subs that
perform poorly!
7.According to the Major," given the
improvement we have made, the step increase
in our backlog and normal delivery times. I
expect that we should return to a sustained
period of profitability in 2008!
OVERVIEW OF ADG AND WHY IT IS A STRONG BUY @ CURRENT LEVELS
FOR YOUR INFORMATION: THE OLD NOTES
CONVERTED INTO NEW NOTES -SENIOR
SECURED YIELDING 8.95% AND
CONVERTED @ $9.95- ADDITION NOTES
GRANTED--LOOKS LIKE AROUND $15
MILLION--IT ALSO APPEARS THAT 1.2
MILLION SHARE WERE ISSUED @ $3.75 OR
SO- THIS STOCK RELEASED UPON THE
MARKET HAS CAUSE A TEMPORARY HIT.
THE SHARE PRICE.. WHEN THE RE-ORG
WAS ANNOUNCED THE STOCK WAS
AROUND $9.95 - WHEN THE "NEW"
CONTRACT WAS ANNOUNCED IN JULY 07
THE STOCK RAN TO AROUND $10.50!
IT IS QUITE OBVIOUS THAT HOLDER OF 1.2
MILLION SHARES OF $3.75 WAS GOING TO
HAVE A PARTY- BECAUSE HE HAS BEEN
SELLING EVER SINCE! WE ASSUME THAT
HE OR SHE IS ALMOST DONE AND THIS
STOCK SHOULD TREND HIGHER AND
HIGHER DURING THE NEXT FEW
QUARTERS.
AT PRESENT THERE ARE AROUND 9.2
MILLION SHARES FULLY DILUTED
OUTSTANDING--THIS TAKES INTO ACCOUNT
THE RECENT 1.2 MILLION SHARES,
OPTIONS & WARRANTS.
IF ALL NOTES CONVERT @ $9.95 THEN
FULLY DILUTED SHARES OUTSTANDING
WOULD BE AROUND 15-16 MILLION--NOTE:
THIS IS OUR ESTIMATE- IT COULD VARY-
GOOD BALL PARK NUMBER.!
THIS CONTRACT ISSUED AROUND MID JULY
O--WE DO NOT ANTICIPATE A MAJOR RAMP
UNTIL 4TH Q OF 07. WE BELIEVE THE
MAJOR EXPLOSION WILL BE IGNITED IN 08
AND BEYOND--IT IS OUR BELIEF THAT
DURING 08 REV WILL CLIMB TO BETWEEN
$110-130 MILLION- WHICH THIS COMPANY
HAS NOT SEEN IN YEARS--THIS OF COURSE
DOES NOT INCLUDE ADDITIONAL AND
PENDING CONTRACTS THAT COULD SHOW
UP AT ANY TIME!
DURING 08 ADG HAS THE POTENTIAL IN
OUR OPINION TO EARN OVER $1.00/SH--I
THINK THIS NUMBER IS EXTREMELY LOW-
BASED UPON FULLY DILUTED SHARES
OUTSTANDING OF AROUND 9.2 MILLION!
EVERY INVESTOR, MUTUAL FUND, HEDGE
FUND, INSIDER AND NOTE HOLDER HAS
BEEN SCREWED BY THE PERFORMANCE
OF ADG UP TO THIS POINT IN TIME, BUT WE
AT S.A.ADVISORY BELIEVE THE FORTUNES
OF ADG ARE GOING TO CHANGE
DRAMATICALLY DURING THE NEXT COUPLE
OF MONTHS AND BEYOND!
BUYING ADG SHARES @ CURRENT LEVELS
OFFER INVESTORS A GROUND FLOOR
ENTRY POINT THAT HAS NOT BEEN
AVAILABLE TO ANY OTHER INVESTOR
TYPES UP TO THIS POINT IN TIME--
EVERYONE ELSE IS BURIED! INSIDERS
HAVE BEEN HEAVY BUYERS AND SOME
FUNDS HAVE ALL BEEN VERY BULLISH ON
ADG- THE TIMING JUST HAS BEEN WRONG--
NOW WE BELIEVE THAT ALL THE PLANETS
AND STARS HAVE LINED UP FOR ADG--SO
EITHER HOP ONBOARD THIS PROJECTILE
OR GET OUT OF THE WAY!!
MILITARY STRENGTH AND READINESS IS
JUST THE WAY THIS WORLD RUNS. THE
DANGER THAT EXISTS MUST BE KEPT IN
CHECK- SOME GROUPS ARE AGAINST THE
MILITARY, SOME WANT TO JUST TALK,
SOME ARE JUST COWARDS--IT IS OUR
OPINION (SA ADVISORY) WE MUST HAVE A
STRONG AND READY MILITARY WITH THE
BEST WEAPONS AVAILABLE AND SHOULD
BE USED TO PROTECT AMERICANS AND
ALLIES AROUND WORLD!
IF YOU LOOK @ THE CURRENT 10Q
RELEASED ( JUNE 30TH Q) YOU WILL SEE
UGLY STUFF--LARGE LOSS/SH, TINY REV &
DEBT PROBLEMS.THE BOOK MINUS THE
GOODWILL WAS AROUND $1.00--NOT A
PRETTY PICTURE--THE STOCK HAD CAVED
FROM $20 (JAN 07) TO A RECENT LOW OF
AROUND $3.50---THIS IS ALL HISTORY!!
IN OUR OPINION ADG IS GOING TO BE A
HUGE WINNER FOR US DURING THE NEXT 3-
12 MONTHS--WE SEE LARGE REV GROWTH
AND IMPRESSIVE NET/SH AND A SHARE
PRICE BETWEEN $10-$15.00 BY LATE 08- IF
IT ALL COMES TOGETHER, WHICH WE
ANTICIPATE!
WE RATE ADG WITH A STRONG BUY
RECOMMENDATION @ CURRENT LEVELS
FOR SHORT AND LONG TERM CAPITAL
GAINS POTENTIAL..ADG COULD ALSO BE A
JUICY TAKEOVER CANDIDATE--WE SEE NO
POISON PILL.
ps:: MANAGEMENT IS AVAILABLE FOR
CONVERSATION--WE HAVE SPOKEN TO THE
MAJOR (PRESIDENT, CEO) MANY TIMES
DURING THE PAST FEW YEARS.
About S.A.Advisory
THE MARKET CONTINUES TO ACT VERY
SHAKY- RISK CONTINUES TO BE AVOIDED
AND SPECULATION IS BEING SHUNNED. WE
AT S. A. ADVISORY CONTINUE TO PLAY AND
CONTINUE TO ADD TO OUR POSITIONS IN
STOCKS THAT WE FAVOR IN AN
ENVIRONMENT OF HIGHER COMMODITY
PRICES LONG TERM!
URANIUM REMAINS A FAVORITE OF OURS
AND BELIEVES THAT THE CURRENT PRICE
CORRECTION IS HEALTHY AND MAY
CONTINUE FOR A SHORT PERIOD , BUT THE
REALITY IS THERE IS A SHORTAGE ON THE
WAY AND WE CONTINUE TO BELIEVE THAT
QUALITY PLAYS SHOULD BE BOUGHT
DURING THIS PAINFUL RE-TRACEMENT IN
SHARE PRICE.
WE FAVOR LONG TERM: EITHER NEAR
TERM PRODUCERS OR EXPLORERS THAT
HAVE THE POTENTIAL TO BE BOUGHT OUT
WITH HUGE CASH HOARD . WE ALSO
PREFER NORTH AMERICA COMPANIES
THAT LIMIT OUR POLITICAL RISK!
SYMBOL CANADIAN PRICE
FIU.TO 8.05
EFR.TO 1.81
MGA.TO 3.60
STM.V 2.77
URE.TO 2.90
TSA.V .76
MZU.V .42
WIWTY.PK US$13.00
WE REMAIN EXTREMELY BULLISH TOWARD INTERNATIONAL OILS!
OUR FAVORITES:
KAZ
IEC.L
UEN.L
SBE.L
AXC.TO
ABG.TO
CVI-A.TO
AWRCF.PK--AS YOU KNOW IS A FAVORITE
OF OURS AND WE HAVE BEEN WAITING
FOR ACCURATE REV AND EARNINGS FROM
THIS COPPER WIRE PLAY IN CHINA FOR THE
PAST 15 MONTHS!
OUR WAIT IS SOON APPROACHING- ON
SEPT 7TH 2007 THE COMPANY INTENDS TO
RELEASE THE REV AND INCOME FOR 2006
AND THE FIRST SIX MONTHS OF 2007!
WE BELIEVE THE NUMBERS HAVE TO BE
LARGE! THEIR LAST AUDITED NUMBER
WAS FOR 2003 WHEN REV WAS $211
MILLION AND NET OF 10 MILLION OR .72/SH-
THE CURRENT BOOK VALUE WAS $7.80-
THEN MANAGEMENT HAD A MELTDOWN
AND THE BOARD OF DIRECTORS COULD
NOT GET ALONG IN THE SANDBOX ANY
LONGER AND LAWSUITS BEGAN TO FLY
LIKE BASEBALLS @ YANKEE STADIUM-
THEN THERE WAS A FRAUD ACCUSATION
AND MORE LAWSUITS--THEN AUGUST 06 IT
LOOK LIKE EVERYONE WAS GOING TO
PLAY NICE--WELL THAT WAS JUST A
DREAM--FINALLY OUT OF THE WILD BLUE
YONDER DURING A HOT JUNE 07 DAY
EVERYTHING WAS SETTLED BEHIND THE
SCENES AND WE HAD A NEW MAJOR
SHAREHOLDER, NAMELY MICHAEL DELL
FROM THE DELL COMPUTERS--HIS FIRM
NOW OWNS 20%--ALL SUITS SETTLED OR
DROPPED AND THE FRAUD CASE WAS
FOUND TO BE A NOT GUILTY VERDICT!!
REGARDLESS OF ALL THIS DRAMA THAT
COULD HAVE EASILY BE CAST AS A TV
SITCOM--AWRCF.PK CONTINUED TO DO BIZ
AND LOTS OF IT!!
WHEN YOU CONSIDER THAT CHINA HAD
HUGE GROWTH DURING 04, 05, 06 AND
NOW 07 IT IS HARD TO BELIEVE THAT
AWRCF.PK 'S GROWTH DID NOT FOLLOW!
THE CHINESE STOCK MARKET IS UP HUGE
DURING THAT TIME PERIOD AND THE
INFRASTRUCTURE OF CHINA HAS GROWN
DRAMATICALLY DURING THAT 3 1/2 YEARS
AND IT IS OUR BELIEF THAT AWRCF.PK REV
AND EARNINGS HAVE ALSO EXPLODED!
REV HAS TO BE OVER $400 MILLION AND
NET SHOULD BE AROUND $15-$20 MILLION
RESULTING IN $1.26/SH IN NET INCOME
BEFORE EXTRA ORDINARY EXPENSE. THE
BOOK VALUE OF AWRCF.PK WAS $7.80 @
THE END OF 03- WE BELIEVE THAT IT MUST
BE $10.00+ @ THE END OF 2006!!
THE MOST COMPELLING ANGLE OF THIS
WHOLE STORY IS THAT MICHAEL DELL DID
ALL THE WORK FOR US--BEFORE HE
INVESTED AROUND $13 MILLION FOR 20%
OF THIS INFRASTRUCTURE PLAY IN CHINA -
WE ASSUME THAT MANY BEAN COUNTERS
VISITED ALL THE PLANTS AND CAME BACK
WITH THE THUMBS UP!!!!
ONLY DAYS AWAY AND WE CONTINUE TO
RATE AWRCF.PK WITH A STRONG BUY
RECOMMENDATION @ $5.05
WE MAY BUY, SELL AND OR HOLD
POSITIONS IN ALL MENTIONED
INVESTMENTS @ ANY TIME!
WE HAVE NOT BEEN PAID BY ANY OF THIS
LISTED COMPANIES WITHIN THIS EMAIL
ALERT.
PHONE SERVICE $850/YEAR--WE CALL YOU
BEFORE THE HERD IS NOTIFIED. CALL US
FOR INFORMATION -801-272-4761
HARD COPY NEWSLETTER
$125.00/YEAR
HAPPY INVESTING
