Adacel Technologies (ADA)
Brendon Lau
Adacel enjoyed its best one-day share price gain on record when it rose almost 40 per cent on Monday. Investors appear to be warming to the aviation simulation and control systems developer after it posted a 275 per cent lift in 2008-09 net profit to $6.8 million on the back of a 49 per cent rise in sales to $55.3 million. The big jump in earnings was due to tax benefits, but management assured investors demand for its products would remain strong as confirmed orders totalled $28 million - a level not seen before in the company's 11-year history as a public entity. While Adacel did not provide earnings guidance for this financial year, it said overseas orders were also growing strongly, particularly from the United States. The stock has risen 174 per cent in the past 12 months, putting its current price/earnings multiple at a little more than eight times - a 19 per cent discount to other small-cap IT stocks.
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