aalexa1225 Posted July 14, 2016 Share Posted July 14, 2016 Hi shareholders! Let's band together. Email me at aalexa1@gmail.com, and let's talk about how we can get as much value from this situation as possible. ADVC is very undervalued and they may try a take under. AOA Link to comment Share on other sites More sharing options...
KJP Posted July 14, 2016 Share Posted July 14, 2016 Hi shareholders! Let's band together. Email me at aalexa1@gmail.com, and let's talk about how we can get as much value from this situation as possible. You'd have appraisal rights (at least) in a take under. But until that happens, what can you do given that the CEO owns more than 50% of the shares? Link to comment Share on other sites More sharing options...
aalexa1225 Posted July 15, 2016 Share Posted July 15, 2016 Good point... Are you a shareholder? AOA Link to comment Share on other sites More sharing options...
KJP Posted July 15, 2016 Share Posted July 15, 2016 Good point... Are you a shareholder? AOA Yes Link to comment Share on other sites More sharing options...
portfolio14 Posted March 9, 2017 Share Posted March 9, 2017 Is anyone still holding ADVC? Just received a juicy 8.54% dividend in my account today. I don't recall there was any announcement. But Google Finance shows the dividend was declared on Feb 16. There was no communication of any form from the company... Or did I miss it? :-\ Link to comment Share on other sites More sharing options...
KJP Posted March 9, 2017 Share Posted March 9, 2017 Is anyone still holding ADVC? Just received a juicy 8.54% dividend in my account today. I don't recall there was any announcement. But Google Finance shows the dividend was declared on Feb 16. There was no communication of any form from the company... Or did I miss it? :-\ I'm still holding. I didn't see any announcement either. Given the historic payout ratio, the dividend is a good sign. We should find out more in a few months when they send the annual report. Link to comment Share on other sites More sharing options...
NeverLoseMoney Posted March 9, 2017 Share Posted March 9, 2017 There was a dividend announcement in my IB account. The stock went up on decent volume as well. I took the opportunity to sell almost all of my position. The way they went about the reverse split, and forced out many small shareholders at a low price, was terrible. Given this event, I believe they are unlikely to treat minority shareholders fairly in the future. Since it didn't make sense for me financially to pursue appraisal rights if I get offered a sub-par price in a future forced cash-out, it didn't make sense for me to hold. There is nothing stopping them from doing another forced cash-out of small shareholders. Link to comment Share on other sites More sharing options...
KJP Posted March 9, 2017 Share Posted March 9, 2017 There was a dividend announcement in my IB account. The stock went up on decent volume as well. I took the opportunity to sell almost all of my position. The way they went about the reverse split, and forced out many small shareholders at a low price, was terrible. Given this event, I believe they are unlikely to treat minority shareholders fairly in the future. Since it didn't make sense for me financially to pursue appraisal rights if I get offered a sub-par price in a future forced cash-out, it didn't make sense for me to hold. There is nothing stopping them from doing another forced cash-out of small shareholders. I generally agree with you. In particular, I agree that a go-private is likely coming and that minority shareholders won't get full value. Link to comment Share on other sites More sharing options...
portfolio14 Posted March 14, 2017 Share Posted March 14, 2017 There was a dividend announcement in my IB account. The stock went up on decent volume as well. I took the opportunity to sell almost all of my position. The way they went about the reverse split, and forced out many small shareholders at a low price, was terrible. Given this event, I believe they are unlikely to treat minority shareholders fairly in the future. Since it didn't make sense for me financially to pursue appraisal rights if I get offered a sub-par price in a future forced cash-out, it didn't make sense for me to hold. There is nothing stopping them from doing another forced cash-out of small shareholders. I generally agree with you. In particular, I agree that a go-private is likely coming and that minority shareholders won't get full value. It depends how small your holding is. ADVC was listed via a backdoor listing at the time when ADVC needed the liquidity for its early investors who put in the capital to transform the business from a desktop software provider to a cloud-based SaaS provider. The CEO looks after these initial investors who helped him going through that difficult time. It shows in his earlier communications and in the generous dividends. If you think about it, given his majority shareholding, he has no reason to share the profits via dividends if he wants to screw all the minority shareholders and maximise his gains. He could've paid himself gigantic salaries. Link to comment Share on other sites More sharing options...
aalexa1225 Posted April 10, 2017 Share Posted April 10, 2017 CFO says financials our out... Anyone seen them yet? they are being distributed by Broadridge. I am a huge fan of ADVC. 8% dividend, no debt, lots of cash, and we shall see if they kick started their revenue growth in 2016. AOA Link to comment Share on other sites More sharing options...
portfolio14 Posted April 10, 2017 Share Posted April 10, 2017 CFO says financials our out... Anyone seen them yet? they are being distributed by Broadridge. I am a huge fan of ADVC. 8% dividend, no debt, lots of cash, and we shall see if they kick started their revenue growth in 2016. AOA Where did you hear it? I haven't heard anything from my broker yet. Link to comment Share on other sites More sharing options...
aalexa1225 Posted April 11, 2017 Share Posted April 11, 2017 I emailed the CFO Link to comment Share on other sites More sharing options...
portfolio14 Posted April 12, 2017 Share Posted April 12, 2017 I emailed the CFO Thanks. The risk with ADVC is, IIRC, Kroger is their primary customer of which the industry is under threat from Amazon. Link to comment Share on other sites More sharing options...
aalexa1225 Posted April 12, 2017 Share Posted April 12, 2017 If the primary risk is that Kroger goes away, then I am fine with that. I don't want to go down an Amazon/grocery store business rabbit hole right now, but suffice to say, delivery of groceries is a business model not really suited that well to deliveries. People think Amazon will eat the whole world; They barely make money, and any money they DO make is directly related to their cloud computing business. AOA Link to comment Share on other sites More sharing options...
Poor Charlie Posted April 12, 2017 Share Posted April 12, 2017 I emailed the CFO Thanks. The risk with ADVC is, IIRC, Kroger is their primary customer of which the industry is under threat from Amazon. ADVC doesn’t make money from Kroger. They make money from Kroger's vendors. My understanding is ADVC initially gained traction by getting Kroger and a few other grocery retailers to endorse their network, which effectively forced smaller vendors unable to develop EDI in-house to go with ADVC. This is a classic two-sided market scheme: get one side of the market to endorse your product by charging them little or nothing and charge the other side for access (think payment networks and ratings agencies). I have concerns about ADVC’s business, but Amazon steamrolling grocery stores isn’t one of them. Link to comment Share on other sites More sharing options...
portfolio14 Posted April 13, 2017 Share Posted April 13, 2017 I emailed the CFO Thanks. The risk with ADVC is, IIRC, Kroger is their primary customer of which the industry is under threat from Amazon. ADVC doesn’t make money from Kroger. They make money from Kroger's vendors. My understanding is ADVC initially gained traction by getting Kroger and a few other grocery retailers to endorse their network, which effectively forced smaller vendors unable to develop EDI in-house to go with ADVC. This is a classic two-sided market scheme: get one side of the market to endorse your product by charging them little or nothing and charge the other side for access (think payment networks and ratings agencies). I have concerns about ADVC’s business, but Amazon steamrolling grocery stores isn’t one of them. What will happen to ADVC's business if one side of this market (i.e. Kroger) disappears? Say, if Kroger decides to close shop tomorrow. Link to comment Share on other sites More sharing options...
aalexa1225 Posted April 13, 2017 Share Posted April 13, 2017 That would be bad, but so far fetched that you should not worry about it. Barnes and Noble, located more rigidly in the sweet spot of destruction than any business Amazon has ever targeted, still has a market cap of $670m. Over the last five years, their stock has gone down 15%, hardly a good result, but so far away from "shutting down shop". AOA Link to comment Share on other sites More sharing options...
Poor Charlie Posted April 13, 2017 Share Posted April 13, 2017 I emailed the CFO Thanks. The risk with ADVC is, IIRC, Kroger is their primary customer of which the industry is under threat from Amazon. ADVC doesn’t make money from Kroger. They make money from Kroger's vendors. My understanding is ADVC initially gained traction by getting Kroger and a few other grocery retailers to endorse their network, which effectively forced smaller vendors unable to develop EDI in-house to go with ADVC. This is a classic two-sided market scheme: get one side of the market to endorse your product by charging them little or nothing and charge the other side for access (think payment networks and ratings agencies). I have concerns about ADVC’s business, but Amazon steamrolling grocery stores isn’t one of them. What will happen to ADVC's business if one side of this market (i.e. Kroger) disappears? Say, if Kroger decides to close shop tomorrow. EDI systems are more interoperable now. On ADVC's website, for instance, they list hundreds of retailer/distributor connections. If Kroger went bust, its vendors would still sell through non-Kroger channels and would need an EDI provider, like ADVC, to help them do it. Link to comment Share on other sites More sharing options...
aalexa1225 Posted April 24, 2017 Share Posted April 24, 2017 Anyone receive financials yet? AOA Link to comment Share on other sites More sharing options...
KJP Posted April 25, 2017 Share Posted April 25, 2017 Anyone receive financials yet? AOA Revenue up ~6%, EBIT and Net Income up ~15% (significant increase in gross margin). At $5/share, it's trading at about ~10x earnings and 7x earnings ex-cash. They are also paying a 34% tax rate, so would benefit from any U.S. corporate tax cut. If you believe minority shareholders will be treated fairly, then $5/share is a bargain. Link to comment Share on other sites More sharing options...
aalexa1225 Posted April 25, 2017 Share Posted April 25, 2017 Yeah... CEO owns 50%, so as long as their is not a take under, things will work out okay. I wish they were buying back shares, instead of paying dividends, but really great financials. Everyone, email the CFO and express pleasure at results, but ask for a shareholder letter or something. AOA Link to comment Share on other sites More sharing options...
KJP Posted October 4, 2017 Share Posted October 4, 2017 Has there been some news today? I managed to get an order filled to sell at $7, but I'm wondering if I'm the rube. Link to comment Share on other sites More sharing options...
KJP Posted January 25, 2018 Share Posted January 25, 2018 Looks like a $0.40/share dividend was declared yesterday. Link to comment Share on other sites More sharing options...
KJP Posted April 17, 2018 Share Posted April 17, 2018 The annual report is out. Revenue ($12.8 million) and EBIT ($4.4 million) were essentially flat for the year. After accounting for the dividend paid earlier this calendar year, the company has about $7 million in net cash. 5.8 million shares at $5.65/share = market cap of $32.8 million. If the new normal tax rate is 25% and the company can keep all of the tax savings, run-rate net income is ~$3.3 million, for a p/e of about 10, and an ex-cash p/e of about 8. EV/EBIT = 6. At the historical payout ratio, 2018 annual dividend should be around 0.45 - 0.50/share. Link to comment Share on other sites More sharing options...
KJP Posted July 30, 2018 Share Posted July 30, 2018 Here's a recent VIC writeup: https://www.valueinvestorsclub.com/idea/ADVANT-E_CORP/142356 Nothing really new in the writeup, but it does pull together the historical financials, which the company no longer reports to the SEC or OTCMarkets. Link to comment Share on other sites More sharing options...
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