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Allied Defense Group (NASDAQOTCBB:ADGI)

CAPS Rating: No stars

The Company is in the defense and security business, with presence in worldwide markets, offering both government and commercial customers products and services.

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5 Outperform
7 Underperform
 

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Top NASDAQOTCBB:ADGI Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

notzia (< 20)
Submitted July 16, 2010

This is essentially an acquisition arbitrage situation without the final completion of the acquisition. Because of the liability issue that threw a wrench into the transaction, I am assumning that the short-term target will be in the $6 to $6.50… More

Mactalon (93.59)
Submitted February 11, 2007

I see a comparitively small company struggling in a market of big established companies. Not to great in my humble opinion.

Fools bullish on NASDAQOTCBB:ADGI are also bullish on:

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Recent Community Commentary

Read the most recent pitches from players about ADGI.

Recs

1
Member Avatar notzia (< 20) Submitted: 7/16/2010 12:17:33 AM : Outperform Start Price: $3.22 NASDAQ OTC:ADGI Score: -274.24

This is essentially an acquisition arbitrage situation without the final completion of the acquisition. Because of the liability issue that threw a wrench into the transaction, I am assumning that the short-term target will be in the $6 to $6.50 range instead of roughly $7.25. ADG's assets will be purchased in less lhan 90 days, so I expect my exit to be triggered within a 100 days. A summary of the terms of the deal follows:

Chemring is purchasing:
• the stock of Mecar SA of Belgium for $45.81 million in cash
• the assets of Mecar USA for $13.75 million in cash plus the assumption of certain liabilities
Chemring is lending:
• Secured Promissory Note (ADG Note) of $3 million, loaned to USA, secured by the stock of USA
• Secured Promissory Note (ARC Note) of 5.2 million euros secured by the stock of Belgium
Loan Repayment Terms
• The ADG Note is due at the closing of the sale of the assets of USA, and the ARC Note is due at the sale of Belgium's stock. Both notes are due at 30 says if the sale agreement is terminated without breach by Chemring.
• Chemring will lend an additional 5.2 million euros to Belgium that will be used to repay the ARC Note, immediately prior to the closing of the Belgium sale. The effect is, the ARC Note will not be repaid by ADG or its subsidiary, ARC Europe, and the repayment will not reduce the cash consideration or the purchase price.
• The ADG note will be repaid from cash consideration payable to ADG.
Liability Concern
• $15 million from the sale ($11.5 million Mecar SA and $3.5 Mecar USA) will be placed into escrow to secure indemnification obligations from the DOJ investigation. This is a cap on potential liability.
• These obligations expire at the earlier of June 30, 2015 or a final resolution with the DOJ.
Other considerations
• A superior transaction could cost ADG $1.2 million.
• ADG will have no significant operations after the sale, and it may dissolve or engage in a business combination, or something else.
Included in the transaction:
Assets
• all accounts receivable, except pledged in factoring
• all inventory
• all fixed assets and leasehold improvements
• all leased assets
• all owned real estate
• all purchase orders and current contracts relating to future delivery of goods and services
• all deposits related to assumed contracts
• all books and records
Liabilities
• assumed contracts
• trade accounts payable
• debt supporting deposits, letters of credit and bonds
Excluded from the transaction:
Assets
• cash, excluding deposits
• prepaid items
Liabilities
• business conducted prior to closing or contracts performed prior to closing
• taxes prior to closing

Recs

1
Member Avatar Mactalon (93.59) Submitted: 2/11/2007 4:43:28 PM : Underperform Start Price: $16.10 NASDAQ OTC:ADGI Score: +279.74

I see a comparitively small company struggling in a market of big established companies. Not to great in my humble opinion.

Leaderboard

Find the members with the highest scoring picks in ADGI.

Score Leader

MacDaddyPickIt

MacDaddyPickIt (< 20) Score: +313.75

The Score Leader is the player with the highest score across all their picks in ADGI.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
MacDaddyPickIt < 20 5/9/2006 Underperform 5Y $22.11 -85.75% +227.99% +313.75 0 Comment
WallStFinest 85.65 1/8/2007 Underperform NS $19.70 -84.01% +205.98% +289.99 0 Comment
PennyStockFJ < 20 2/5/2007 Underperform NS $17.85 -82.35% +197.73% +280.08 0 Comment
Mactalon 93.59 2/12/2007 Underperform 3M $16.10 -80.43% +199.30% +279.74 1 Comment
BullBullBull 74.78 2/8/2007 Underperform NS $17.10 -81.58% +197.56% +279.14 0 Comment
cecamadocv2 99.90 6/11/2010 Underperform 5Y $2.26 +39.38% +271.49% +232.11 0 Comment
ceccaps 28.45 6/15/2010 Underperform 5Y $1.93 +63.21% +268.05% +204.84 0 Comment
CBeeks1984 < 20 8/18/2010 Outperform 5Y $2.90 +8.62% +270.47% -261.85 0 Comment
notzia < 20 7/16/2010 3/19/2011 Outperform 1Y $3.22 -2.17% +272.07% -274.24 3 Comments
dsmeathers 36.14 12/28/2006 Outperform NS $21.15 -85.11% +202.52% -287.63 0 Comment

Wall Street

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