Artaflex Inc V.ATF

RE: Some thoughts....

[wormbuster]

Valid concerns, here are some thoughts: Potentially negative: 1. US Economy - If the US economy continues to contract and goes into a recession, Adeptron could be hit hard. Cdn dollar would keep coming down and probably somewhat offset potential stagnation in revenue. I say , because there is growth potential even in mild recessions. All depends in what niche(s) a company is in. I would say that larger volume driven EMS companies would be in more serious difficulties. 2. Geopolitical Concerns - The world has been rather messy for years, but there are some potential problems on the horizon throughout the Middle East and on the Korean peninsula. Whether anything happens or not is uncertain, however the tension could keep the market subdued and create little demand for small caps. same concerns have been in existence for a while, and yet markets thrive and reached new highs. That's why there is a gold market. Otherwise big money can't just sit on cash and equities still have a good chunk of the investment markets. 3. Bird Flu - It doesn't seem to have gone away yet, so forms a potential threat. not an issue for Adeptron specifically - but part of a series of what if's scanrios in the invetment markets as in point number 2. It's out there but it doesn't stop investment. The markets are the markets and until a real issue (i.e. directly and openly having an impact) pops up on the health side, it won't be a tangible factor. But again, gold remains the hedge against sleepless nights for some. 4. Canadian Economy - Manufacturing is having significant trouble in Canada, and it is hard to say where it will go from here. Continued weakness in this sector could have a negative psychological impact on investors, even if its doesn't cause the company significant economic problems. the problem with generalisation is that people start believing all stories without discrimination. Dig deeper on the manufacturing side and you will see where the issues are. As for investors...people can burry their head in the sand being scared of hurricanes, but in the mean time there will be smart money chasing those investments that are contrarian to the herd mentality. If the company continues doing well, smart money will be in it. Period. Adeptron is only showing solid and consistent track record now, so the jury was (and to a certain extent is) still out on prospects. Smart money wants some conistency to project potential return. We'll see what happens in the next 6 months. 5. General Malaise - Investors don't seem interested in small caps, and it is difficult to say if there will be much of an interest in the near future. This could help cap Adeptron's share price, despite its revenue growth.Thems are the risk in investing in any small cap. But other factors characterizing this company are on our side, so I stick with my prospect. 6. Loss of a significant customer - Adeptron has some customers who form a large part of its revenue base. The loss of one of these customers could have a big impact on its profitability. that remains the most potential negative factor in your landscape of concerns. The issue is whether they would ever loose customers to other EMS competitors (seems unlikely given their positive reputation)or due to severe contraction in their niche markets. And that remains a risk that is priced in whatever the market decides to pay for Adeptron's stock. Obviously any future outlook in a company analysis - especially small cap - must have that dimension factored in. Anyone have any other thoughts?