aalexa1225 Posted August 8, 2018 Share Posted August 8, 2018 Very strong financially. Pays a 9% dividend. That is great. I am not sure I totally trust the management, but sunlight is the best disinfectant! Link to comment Share on other sites More sharing options...
portfolio14 Posted August 10, 2018 Share Posted August 10, 2018 Hi KJP, I don't have access to VIC. Any chance you can send me (john@portfolio14.com) a copy? Thanks -- John 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...
portfolio14 Posted August 10, 2018 Share Posted August 10, 2018 Very strong financially. Pays a 9% dividend. That is great. I am not sure I totally trust the management, but sunlight is the best disinfectant! I said this before. When the 50%+ controlling shareholder is willing share his fortune via 9% dividend, he is not there to screw his long-term shareholders. He has every authority and incentive to stop dividends and cash out himself via salaries. But he doesn't. Last time when he tried to reverse-split and cancelled it, you can tell he hated opportunists though. Do you know ADVC's history, how the guy transformed the company from a Delphi-based desktop app developer to a cloud-based service? Link to comment Share on other sites More sharing options...
KJP Posted August 10, 2018 Share Posted August 10, 2018 Hi KJP, I don't have access to VIC. Any chance you can send me (john@portfolio14.com) a copy? Thanks -- John 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. The VIC writeup is older than 45 days, so it's publicly available. You just need to register with the website to access it. Link to comment Share on other sites More sharing options...
portfolio14 Posted August 10, 2018 Share Posted August 10, 2018 Hi KJP, I don't have access to VIC. Any chance you can send me (john@portfolio14.com) a copy? Thanks -- John 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. The VIC writeup is older than 45 days, so it's publicly available. You just need to register with the website to access it. Thanks! Link to comment Share on other sites More sharing options...
aalexa1225 Posted August 14, 2018 Share Posted August 14, 2018 Wow, that is a great write up. It all comes down to Jason, in my opinion. But, this is a very exciting stock for me. The new tax rates are going to be huge for investors in this stock. Combined with a potential for good revenue increases, I am very excited. Andrew Alexander Link to comment Share on other sites More sharing options...
aalexa1225 Posted November 13, 2018 Share Posted November 13, 2018 As of 12-31-17, ADVC was making $3m of net income a year and had $10m of cash on the balance sheet. For the 2018 results, they are going to get an immediate $400k a year dropping to the bottom line. Really exciting stuff! Link to comment Share on other sites More sharing options...
aalexa1225 Posted March 6, 2019 Share Posted March 6, 2019 Up to $5.25 on strong volume. Will probably declare a big dividend soon. Link to comment Share on other sites More sharing options...
Poor Charlie Posted March 6, 2019 Share Posted March 6, 2019 Up to $5.25 on strong volume. Will probably declare a big dividend soon. Advant-e paid their annual dividend in February. It was 40 cents, the same as last year. Link to comment Share on other sites More sharing options...
Steven B Posted March 6, 2019 Share Posted March 6, 2019 So does anyone have any color on the pricing power that the business has referenced in the VIC writeup? He made it sound like a gimme, heck that that was the strategy going forward. Can anyone shed light on this one way or the other? Where has their growth come from in previous years, more transactions or pricing? Thanks Link to comment Share on other sites More sharing options...
Poor Charlie Posted March 7, 2019 Share Posted March 7, 2019 So does anyone have any color on the pricing power that the business has referenced in the VIC writeup? He made it sound like a gimme, heck that that was the strategy going forward. Can anyone shed light on this one way or the other? Where has their growth come from in previous years, more transactions or pricing? Thanks They disclose pricing for their WEB EDI product on the website. If you run a waybackmachine search, you’ll notice that subscription fees increased in 2016 and transaction fees increased in 2010. Both increases were modest—10% and 5%, respectively. I think there’s some untapped pricing power. They generate revenues of $13 million for processing over $10 billion in transactions—that’s just 13bps. They’re also one of the lower-priced providers in the industry (why else would they disclose their pricing?). To give one example of untapped pricing power, consider the 27% discount they offer subscribers paying via credit card. If they reduced the discount to, say, 10%, how many subscribers would leave? I don’t think too many. The owner, Jason, seems shrewd. I imagine he’ll bump prices when he wants to sell. Link to comment Share on other sites More sharing options...
Steven B Posted March 7, 2019 Share Posted March 7, 2019 Thanks for the reply. Great idea with the waybackmachine. Have you met him? What else gives off the impression that he's shrewd? Thanks. Link to comment Share on other sites More sharing options...
Poor Charlie Posted March 7, 2019 Share Posted March 7, 2019 Thanks for the reply. Great idea with the waybackmachine. Have you met him? What else gives off the impression that he's shrewd? Thanks. Why is he shrewd? If you research some of his past transactions (I think a few were mentioned on VIC), you get a sense the guy knows what he’s doing. I haven’t met him (though I’d like to). I admire people like him: small business owners that carve out a little niche in some corner of the market. And contrary to what some have said on this site, I think he’s treated minority investors fairly. In fact, while this is a small holding, every year we send him a Christmas card thanking him and the management for doing a decent job. Maybe I’ll look stupid one day, but thus far I’ve been impressed. My only gripe: I think there’s a lot of reinvestment opportunities they’re watching go by. With all that data moving through their cloud, you’d think they’d develop other non-EDI products. Take, for instance, iTradeNetwork’s (sub of Roper Tech) supply chain management products. Why doesn’t Edict look at something like that as an upsell to their subscribers? Link to comment Share on other sites More sharing options...
KJP Posted April 8, 2019 Share Posted April 8, 2019 2018 financials have been released. Revenue flat (~$12.7 million), COGS and OpEx up, so EBIT down to $3.7 million. The company benefited from tax reform, so net income was essentially flat at $2.9 million. FCF essentially equaled net income. Net cash is $9.7 million. There are 5.812 million shares outstanding. At $4.75/share, the market cap is ~$28 million, and the EV is ~$18 million. So, EV/EBIT is ~5x, EV/NI is ~6x, and MCap/NI is ~10x. Link to comment Share on other sites More sharing options...
widenthemoat Posted June 8, 2019 Share Posted June 8, 2019 Where have people been able to find the financial statements for this company? I can't seem to find them anywhere other than the few on this thread. Link to comment Share on other sites More sharing options...
KJP Posted April 19, 2020 Share Posted April 19, 2020 I received the 2019 financials. Merkur Group appears to have been essentially shut down due to the termination of its main reseller agreement and is classified as a discontinued operation. Continuing operations revenue of $11.5 million ($11.7 in 2018) and EBIT of $3.09 million ($3.17 in 2018). Cash up from $9.7 million to $10.2 million. There are 5.8 million shares. At $5/share the market cap is $29 million, the EV is $19 million. So, it's trading a bit above 6x EBIT. Link to comment Share on other sites More sharing options...
KJP Posted February 3, 2021 Share Posted February 3, 2021 $0.42 annual dividend for 2020: https://www.otcmarkets.com/stock/ADVC/security Link to comment Share on other sites More sharing options...
KJP Posted May 22, 2021 Share Posted May 22, 2021 (edited) I received the 2020 financials. Revenue of $11.8 million (up 3%), EBIT of $3.37 million (up 11%), net income from continuing operations of $2.7 million (up 11%). 5.763 million shares outstanding at $5.30/share = market cap of $31 million. The company has $10 million in cash and no debt, for an enterprise value of $21 million, an ex-cash p/e of ~8, and a dividend yield of 8%. It's not clear to me how the new SEC rules on quoting dark stocks is going to affect trading in the company's shares. Edited May 22, 2021 by KJP Link to comment Share on other sites More sharing options...
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