Author Topic: ADVC - Advant-e Corp.  (Read 23905 times)

portfolio14

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Re: ADVC - Advant-e Corp.
« Reply #60 on: April 10, 2017, 04:40:51 PM »
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.


aalexa1225

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Re: ADVC - Advant-e Corp.
« Reply #61 on: April 11, 2017, 11:30:09 AM »
I emailed the CFO

portfolio14

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Re: ADVC - Advant-e Corp.
« Reply #62 on: April 11, 2017, 05:50:05 PM »
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.

aalexa1225

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Re: ADVC - Advant-e Corp.
« Reply #63 on: April 12, 2017, 09:16:46 AM »
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


Poor Charlie

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Re: ADVC - Advant-e Corp.
« Reply #64 on: April 12, 2017, 10:47:46 AM »
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 doesnít 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 ADVCís business, but Amazon steamrolling grocery stores isnít one of them. 



portfolio14

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Re: ADVC - Advant-e Corp.
« Reply #65 on: April 12, 2017, 07:57:30 PM »
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 doesnít 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 ADVCís business, but Amazon steamrolling grocery stores isnít 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.

aalexa1225

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Re: ADVC - Advant-e Corp.
« Reply #66 on: April 13, 2017, 07:25:04 AM »
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


Poor Charlie

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Re: ADVC - Advant-e Corp.
« Reply #67 on: April 13, 2017, 03:35:19 PM »
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 doesnít 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 ADVCís business, but Amazon steamrolling grocery stores isnít 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. 

aalexa1225

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Re: ADVC - Advant-e Corp.
« Reply #68 on: April 24, 2017, 02:46:04 PM »
Anyone receive financials yet?

AOA

KJP

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Re: ADVC - Advant-e Corp.
« Reply #69 on: April 25, 2017, 06:33:43 AM »
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.