BlueStone Capital Partners, L.P., Initiates Coverage on American Dental Technologies, Inc. With a BUY Rating.NEW YORK--(BUSINESS WIRE)--Nov. 18, 1998--Senior Analyst, Scott Baily of BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Partners, L.P. initiates coverage on American Dental Technologies, Inc (ADLI- NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on ) with a Buy Rating. American Dental Technologies, headquartered in Southfield, Michigan Southfield is a city in Oakland County of the U.S. state of Michigan. It is a suburb of Detroit and is part of the metro Detroit area. As of the 2000 census, the city had a total population of 78,296. Southfield Township is adjacent to the city on the north side. , is a developer, manufacturer, and a marketer of advanced medical technologies for the dental markets. ADLI's products are marketed domestically and internationally to dental professionals through a network of dental product distributors. Analyst's Summary: -- We are initiating coverage of ADLI with a BUY Recommendation, and a 12-18 month price target of $7-$9 per share. Our positive outlook is based on two main factors: 1) annual growth of ADLI's domestic & international core KCP KCP Party of Communists of Kyrgyzstan KCP Khmer Citizen Party (Cambodia) KCP Kingston Computer Planet KCP knurling cup point (fasteners) KCP Kernel Control Path business exceeding 15%; and 2) revenues and earnings growth of 12%-20% annually. -- ADLI is currently a market leader in air abrasion products (known as KCP Cavity Preparation Systems) which are used by dentists to remove decay and tooth structures, including enamel for cavity and other dental restorations. -- ADLI has a history of introducing a steady flow of new products, and FY98 is no exception. In the second half FY98, two new laser products will begin shipping, an upgraded PulseMaster laser for soft tissue surgery and periodontal disease Periodontal Disease Definition Periodontal diseases are a group of diseases that affect the tissues that support and anchor the teeth. Left untreated, periodontal disease results in the destruction of the gums, alveolar bone (the part of the jaws where and a Diode laser for laser curettage curettage /cu·ret·tage/ (ku?re-tahzh´) [Fr.] the cleansing of a diseased surface, as with a curet. medical curettage . -- Part of ADLI's long-term growth strategy is external growth through acquisitions or mergers, which we expect to continue. ADLI's management team has a successful track record of acquiring product lines and new businesses and successfully integrating them. -- ADLI has excellent margins. In the 3Q FY98 ending September, 30th, ADLI's gross margin exceeded 51%, and its operating and net margins nearly doubled to 8.4%. Also, due to losses in previous years, ADLI currently has net operating tax loss carryforwards tax loss carryforward See carryforward. over $16.5 million. BlueStone Capital Partners, L.P. is a full service investment banking and brokerage firm that delivers financial services to emerging growth and medium size companies worldwide. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
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