Friday, December 22, 2006

ADV Group Limited seems a bit confused ?

ADV Group Limited (ASX:ADS) is switching from medical imaging to exploration for precious metals in Saudi Arabia. ADV Group Limited announced, in December 2006, that it will acquire Vertex Group, a company that holds precious metals and base metals prospects close to the Red Sea. A shareholder approval meeting is scheduled for March 2007. Recent drilling in the region by Vertex shows promise.

To me companies that completely change their core focus are usually not the best companies with which to invest. Investors in this company should feel concerned as the company will change the sector weightings in their portfolio.

This is not a good value investment as it has not been making a profit with EPS last year of -6.1.

Remember to BEWARE companies that chan ge their primary focus as you need to wonder why they couldn't make a profit at the first business why should the second one work.

Good Luck investing.

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