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Author Topic: AIDO - revisited - PRO / CON
Purl Gurl
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Another interesting company for you to research.

AIDO, Advanced ID Corporation, is developing
a unique market niche, but does have some
competition in this area. However, overall,
this is a new budding industry with a very
large market far from filled. Supply of this
product is low and demand is high.

This company is involved in radio frequency
identification tags (sound familiar?) for
animals, especially livestock and wild game
tracking for environmental tracking. They
also have a foothold in "pet tracking" which
is not yet a large market.

Recently AIDO formed a partnership with
Applied Wireless Identifications Group,
AWID, to work together. AIDO provides the
actual microchip for tracking. AWID provides
the "reader" for reading AIDO's microchip.
This is a most logical partnership.

AWID is truthfully rated as the leader in
this field of "chip readers" and markets
all over the world. Their market contacts
should prove beneficial to AIDO.

Other news and SEC filings are available
through the usual resources and worth
some reading time. Please do read all
information you can find for your safety.

This is a company sponsored news spin which
is basically true:

"...achieved record revenues of $262,392 for
the quarter ended September 30, 2003 and
$669,325 for the first nine months of fiscal
2003 ended September 30, 2003...an increase
of 64% and 52% ...."

This is a 10Q abstract realistic spin:

(snipped for brevity)

net loss for the current nine months ended
was larger by $149,246 or 280% as compared
to the same period in the previous year.

Revenues during the current quarter increased
by $102,158 or 64% over the comparable period
last year and increased by $229,804 or 52%
during the first nine months of the current
year versus last year current nine month

general and administrative expenses were
higher by $278,467 or 118%

September 30, 2003, we had cash and cash
equivalents of $53,090.

net cash used in operating activities was
lower by $22,388 or 45%


This is my personal spin on all of this.

AIDO was both surprised and not prepared
for such a sudden increase in sales.

A majority of their losses for this year
are not contributable to lost revenue because
of lower sales. Quite the opposite is very
apparent to even a casual reader.

This year's losses are a direct result of
administrative expenses, such as increase in
employment salaries, costs of shipping, and
a substantial very large buy not anticipated.

Otherwords, their efforts at marketing their
product backfired, in a positive manner. AIDO
did not expect such a sudden sales increase.

This is good news in a funny way.

My opinion is AIDO will get their act together
and do much better in the coming year. Now
they know there is a market and they will
better prepare for sales and delivery.

There are some positive highlights which
offset their current red ink condition.
Do understand "red ink" means they are
currently operating at a loss although
a relatively mild loss.

Microchip tracking is now mandated by law
in the USA. There is a market. Research this
law for the finer details and how this effects
this specific market niche.

AIDO is expanding into South America and the
Asian market. Both are high producers of meat
products, and have a need for better tracking
of their livestocks.

Partnering with AWID is very positive for
an obvious reason; AWID will introduce AIDO
to a huge international market. AWID is
actually ranked as the number one dealer
for radio frequency readers, by the industry,
and enjoys an extensive international market.

Some warnings. Clearly AIDO does not have
much cash on hand. This should be taken in
the context of sales figures. They are not
turning millions of dollars, so low cash is
logical in the context of overall revenue.
AIDO is far from a giant corporation.

Small companies are at greater risks of
being hit hard by negative economic
conditions; they are fragile.

AIDO is currently in the red ink indicating
higher risks than usual.

This company, AIDO, makes their sales in
Canadian dollars and "resales" are made
in American dollars. The currency exchange
rate will effect their profits or losses.
You will need to factor in this exchange
rate for evaluation now, and in the future.

Overall, I hold an opinion AIDO will do very
well in the coming year. Don't expect huge
increases in stock prices nor profits by
AIDO. They are clearly a new company with
not a lot of cash but good connections and
a very unique product for a market with high
demand for a low supply product.

AIDO should flatline for a month, maybe two,
then begin to rise at a slow steady pace as
their sales and market expand.

On the technical side, there is a positive
signal and a negative signal. You did not
expect everything to be good news, did you?

Positive side is AIDO is just now popping
out of a low trough, and is neither oversold
nor overbought; Goldilocks just right.

Negative side is AIDO will meet upward
resistance around .65 to .70 per share.
AIDO tried to break through this range
but fell back in price during our poor
December market. There is no way to know
if AIDO would have broke out because of
the December market fall.

I am not worried about this December fall
in price, this is in keeping with the
general market and general stocks.

I am a little worried about AIDO breaking
out to a new price high. At this point in
growth, AIDO will peak and fall quite a
bit which may cause some to panic sell,
and cause others to not invest. Other
investors will see this as a good chance
to buy in at lower prices. Volatility
will be high when AIDO tries to set a new
record high which will cause concern.

Overall trend for AIDO is a healthy slow
growth in stock price. This stock will not
skyrocket but, most likely, will not let
you down either. This would be a good
stock for those wanting to make a "safer"
investment in a penny stock.

This will be a long term slow growth stock.

My customary reminder. Mine is an opinion
and should be read with a skeptical mind's
eye. Do not buy nor sell based on my opinion.

Research carefully, read all news, read all
SEC filings, look at the market and all that.
Be very careful. I could be leading you to
money loss, without intent.

We are in for 5,000 shares at .52 per share.


Purl Gurl


Posts: 7504 | Registered: Dec 2003  |  IP: Logged | Report this post to a Moderator
STAR GAZER
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You are right that it is mandated by law. Also, they are teaming up with major companies, there is a new news service info out on that today. Also, one of their main points is that their system can be used to
TRACT ANIMALS THAT TURN UP WITH MAD COW DISEASE. Since a case of Mad Cow Disease turned up today, people might start buying their shares. And anyway, about a week ago, the stock started a new uptrend. With alignments with major companies, and their probable increasing sales, they appear to be the radio frequency company to buy. Other companies are working on chips to be used in merchandice, but animal tracking is the area to be in now. Which is where they are at. In addition to that, they are doing research on making merchandice chips. Tomorrow I'm buying
more shares. I also have a post on AIDO, last
updated 17 Dec if anybody wants to read it.


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