Transcription
Hi there. In this video, we're going to discuss about a company requested by a Titan member who has access to my portfolio. And that company is ADO MERA, ticker symbol, ADO.
If you look at the stock price in recent days, started to went up quite quite a lot from $2 to 40 cents, an increase of 5%. And after hours an increase over 2.5%.
Now, first thing you have to look at the market cap. Market cap, which now it's around $73 million according to Google Finance. Always check also Yahoo Finance because sometimes there are differences and it might be this big. So Yahoo Finance says the same thing, $73 million.
Now, is this a great buy for you right now? So, my purpose with this channel and also my membership is to help you make money and avoid having lots, lots of losses. So, let's start the analysis. Keep in mind, market $73 billion right here.
Now let's check, let's check their revenue, revenue over the last three years or five years. As you can see, we have here a better picture. Over the last 5 years, the revenue went from 62k or 62,000 100. That's a quite, quite big jump. Then a decline, small decline. Then a jump again, a rebound. And then a huge, huge drop. So as you can see, the revenue is quite, quite cyclical. If you have another jump like this from 100K to 500K or maybe 1 million, then the price will rebound quite, quite a lot.
But pay attention to one important thing. If you look at other earnings, I mean net income minus, and those losses have increased over the last five years. This is quite, quite bad.
Now, can this business rebound? Because if you have a jump in the revenue, a high growth rate, for sure the price will increase. But if you check the latest report, you will see that the revenue over last 3 months has grown by 50%. From 22 million to 11, sorry, not 22 million because these are in thousands. From 22K to 11K. And for the last 9 months, the bigger we got. Same with their losses. Their losses have increased and this is quite, quite a red flag.
Now, if you look at their balance sheet, because let's also check their balance sheet. Maybe there is something valuable there. You never know. Let's compare again, market cap $73 million and what they have on their balance sheet. 20 million in cash, 30 million in cash. That's quite good compared to their current market cap. Quite a significant amount, but it doesn't justify their current valuation. And they have no debt. This is a green flag. That's great. That's great.
Now, you also have to understand how they make money. So this company, ADO, is a semiconductor material and technology company. They develop one kind of film called mirror silicon technology, which enhances transistor performance and power efficiency in chips. So as there is this AI boom, data centers need more chips for AI loads. The fin field, fin deposit can be a huge, huge improvement to the entire ecosystem of AI.
Now, they can succeed if they, the film they promise, quite, quite the new technology. I mean, a new technology, something that the market needs. Yes. The market cap can increase to allow from this level to have a jump. I mean, the price to go back to more than $40 per share, 10x, because 10x if you have 10x market cap goes to 700 million. This can happen because the market cap is also small. But they have, it's like a lottery ticket. You are, if you are lucky, you can win big, but also the losses are huge.
Now, keep in mind that this is an early stage company. The technology is in the early stage. You never know and it's hard to predict if they can succeed or not. They also sell a software, MSD card licensing. Here they charge a subscription, monthly or yearly. We also offer some consulting and engineering services, which are used for those, for these film deposit. You have to understand how they make money because once you know this, you can assess their future upgrades.
So the report on this, only if they succeed with that film, can be the 5G, 6G mobile devices where their film reduces power losses and low noise amplifiers become more efficient. And this is what we need in DAM. This is another technology used, data centers market. Here you can see AI overload, 5G, 6G, 5G, 6G electrification because once the film is used there, reduce power consumption, they can use in other fields. And the market opportunity can be billions of dollars, quite, quite 600, more than 600 billion dollars. But again, only if IG becomes the gold standard. In that way, you have to think. That's why I'm saying that is like a lottery ticket.
Now, the price went up in recent days because they do, there is some optimism. They announced a new partnership, but again, with a major unnamed chip equipment vendor. So we don't know yet who is that vendor.
Now, the upside, as I said, can be quite, quite huge, 10x from this company, you can make it. But the downside, when you look at the declining revenue here, you can see over last quarter, over the last 9 months, plus here, the number of shares over last years, this number has increased from 12 million shares, 41 million. So an increase over close to 3x. When you see something like this and declining revenue plus huge losses, this company is headed for bankruptcy and your investment, your investment in the long term. You have to understand this because in the short term, you can make money with any stock. If you have a jump like this over 700%, you make money. But in the long term, look here, a decline over 307%.
So my analysis is for the long term. Nobody can predict short-term fluctuations. If somebody says that word, they do that, they're just lucky. In the long term, this company doesn't have the right, let's say, the right things to succeed. In my view, maybe for you it's the right investment, but for me, it's not.
That's why if you want better investment ideas, to stop losing money, increase your returns. I mean, my purpose, I really care about my members and also my viewers want to to make a lot of money and don't lose a dollar. So that's why I'm offering my membership, Titan membership, Titan Investor, where you can have access to my portfolio and my performance over the last four years has been over 40%. And you know why that happened? Because I always, always look at the business, the future outlook, analyze, read the reports, look at the competition, other reports, of course, and it takes a lot, a lot of time. And over those years, I've accumulated a lot, a lot of knowledge, and that helps me to have this great performance over 40% later. And on top of this, you also get access to weekly updates on my portfolio, real-time support via private message, and one-on-one portfolio review. And of course, the best investment of the week.
So if you want to become a winner, stop losing money, join my Titan membership. And that's it for this video. Don't stop and believe in.