Corner of Berkshire & Fairfax Message Board

General Category => Investment Ideas => Topic started by: alpha23 on October 18, 2012, 09:03:48 AM

Title: ADVC - Advant-e Corp.
Post by: alpha23 on October 18, 2012, 09:03:48 AM
Summary: Micro-cap EDI provider for small grocery suppliers. Business model not unlike that of EBIX

Ticker: ADVC
Market Cap: $17M
P/E: 9.5
P/CF: 8.6

There are two segments to the business. Edict and Merkur. Merkur is nothing phenomenal. It is a document-routing platform and has much larger competitors that do pretty much exactly what it does but better.

But Edict is interesting. They provide an exchange (an EDI, Electronic Data Interchange - which is mostly responsible for processing payments between the small supplier and the grocery store) for small suppliers to grocery stores (and now the auto industry).

So basically a small, local grocery supplier who doesn't have the infrastructure to have their own enterprise EDI uses Edict. This is great for the grocery store and the small supplier, both of whom get lots of exposure to their desired audience where there is otherwise a complicated and cumbersome series of hurdles to clear in order for them to do business with one another. This creates a network effect, which is friend and enabler of the business moat.

They are now trying to do the same thing in the automobile industry.

I was impressed with the following, which confirms the likelihood of a sustainable competitive advantage in their niche:

- Consistently increasing revenue and earnings for 10 years
- ROE is currently around 32% and has been above 23% for the past 9 years
- ROIC consistently over 30%
- No debt

The founder / CEO owns more than 50% of shares. There is more than $3.5M in excess cash on the balance sheet at present.

Disclosure: I am long ADVC (starter position)

This is the first investment idea I've written up here, I welcome your feedback.

Title: Re: ADVC Advant-e Corp.
Post by: LC on October 18, 2012, 01:46:19 PM
The financials look good I'm just not sure I can buy the valuation.

Concerns:
1) It is the software business and the only moat i see is the switching inconvenience for their current customers. That said, their current customers as you say are small suppliers who could go out of business. If they go out of business, will new market entrants use Edict?

2) Exec compensation is about $400,000...does this seem somewhat high? The company made 1.7m in net profits last year.

3) Is the market valuation a bit high? $17.5m market cap...you figure with the $3m excess cash on the B/S that leaves a net $14.5m on the operating assets....would you pay $14.5m for a software company returning about $2m/year? If we assume modest growth you're looking at probably 15-17% return for a software company with a relatively small moat.
Title: Re: ADVC Advant-e Corp.
Post by: Packer16 on October 18, 2012, 03:48:15 PM
It does appear reasonably priced but the auto industry already has many incumbent EDI providers amongst suppliers.  The same network effect you describe also provides a challenge to enter new markets and obtain new customers.  What has been their growth with their exisiting network and what are the prospects there.  Given the locked-in nature of customers, I think the ability to grow current networks is as or more important the developing new networks.

Packer
Title: Re: ADVC Advant-e Corp.
Post by: ItsAValueTrap on October 18, 2012, 04:51:14 PM
Very interesting find!

What's the deal with the 10-for-1 stock split?  It seems like perhaps management is trying to make this stock look unappealing or something.  No institutional investor will buy penny stocks like this.
If I wanted to increase liquidity and lower costs I would probably do the reverse (or do nothing).  It would mop up odd lots for one thing.

Quote
Advant-e Corporation Announces Ten-for-One Stock Split, Payment of $2 Million Cash Dividend, and Trading Symbol Change to ADVC

DAYTON, Ohio, October 30, 2009 -- Advant-e Corporation (OTC Bulletin Board: ADVC), a provider of Internet-based Electronic Data Interchange and electronic document management software and services today announced that its Board of Directors has authorized a ten-for-one stock split of the Company’s common stock.  All shareholders of record on November 30, 2009 will receive 10 shares in exchange for each share held on that date. The Company’s Certificate of Incorporation will be amended to increase the number of authorized common shares to 100,000,000 in order to carry out the stock split.

The Board of Directors also declared the payment of $.03 per share (after the ten-for-one stock split) cash dividend, payable in three installments of $.01 each by no later than December 31, 2009, June 30, 2010, and December 31, 2010.  The $.03 per share cash dividend, which will total approximately $2 million, is equivalent to a $.30 dividend per share prior to the ten-for-one stock split.

In addition, the Company requested, and was granted, a change to the Company’s trading symbol from ADVC to ADVC effective on Monday, November 2, 2009.

Jason K. Wadzinski, Chairman, Chief Executive Officer, and President, remarked, “The purpose of the cash dividend is to reward the Company’s shareholders, many of whom have been shareholders for a very long time, and to enable them to likely take advantage of favorable Federal income tax treatment that is scheduled to expire at the end of 2010.  The cash dividend for shareholders who hold the stock long enough to receive all three installments represents a 21% return on investment based on the most recent closing price of the Company’s stock of $1.39.

“The purpose of the ten-for-one stock split is to increase the number of shares available in the public float to provide the potential for additional market liquidity for our stock”, continued Mr. Wadzinski.
Title: Re: ADVC Advant-e Corp.
Post by: alpha23 on October 18, 2012, 06:34:57 PM
Cheers guys - it is fun to see some responses on this. I have done my best to answer what I interpreted as questions (at least questions that I think I have some sort of an answer for).

1) It is the software business and the only moat i see is the switching inconvenience for their current customers. That said, their current customers as you say are small suppliers who could go out of business. If they go out of business, will new market entrants use Edict?

I suppose this is possible, but it seems unlikely to me. The grocery business has been growing at around 7 or 8% annually even through the recession. New market entrants are very likely to use Edict because they offer the best exposure to the grocery chains. Since there is not a larger competitor, small suppliers would have no reason to go elsewhere (why would you sign up with an EDI company that offered you exposure to less grocery chains), and it will be difficult for competitors to lure them away. Edict charges the grocery chain zero, so the grocery chain would have to have some sweet incentive to do business with someone else...

2) Exec compensation is about $400,000...does this seem somewhat high? The company made 1.7m in net profits last year.

Hmm. Where did you see that? The 2011 10k says that he and the CFO received identical salaries of $201k each. The CEO owns 54% of outstanding shares.
EBIT over the past 12 months was about $2.6M. They also paid out special dividends in 2009, 2010 and 2011.

3) Is the market valuation a bit high? $17.5m market cap...you figure with the $3m excess cash on the B/S that leaves a net $14.5m on the operating assets....would you pay $14.5m for a software company returning about $2m/year? If we assume modest growth you're looking at probably 15-17% return for a software company with a relatively small moat.
Their operating margin is ~27% (EBIT of $2.6M on ~$9.6M of revenue) and has been increasing (albeit lumpily) over the past 10 years. They are growing at a respectable clip.

It does appear reasonably priced but the auto industry already has many incumbent EDI providers amongst suppliers.  The same network effect you describe also provides a challenge to enter new markets and obtain new customers.  What has been their growth with their exisiting network and what are the prospects there.  Given the locked-in nature of customers, I think the ability to grow current networks is as or more important the developing new networks.
Their automotive segment grew 13% in 2011 (18% in Q22012). It is still only about 10% of their EDI business, but they are finding new customers...and they are reporting volume increases in the grocery EDI network (about 5% from Q2 2011 to Q2 2012). Their enterprise segment also grew 20% YOY.

Very interesting find!

What's the deal with the 10-for-1 stock split?  It seems like perhaps management is trying to make this stock look unappealing or something.  No institutional investor will buy penny stocks like this.
If I wanted to increase liquidity and lower costs I would probably do the reverse (or do nothing).  It would mop up odd lots for one thing.

Quote
Advant-e Corporation Announces Ten-for-One Stock Split, Payment of $2 Million Cash Dividend, and Trading Symbol Change to ADVC

DAYTON, Ohio, October 30, 2009 -- Advant-e Corporation (OTC Bulletin Board: ADVC), a provider of Internet-based Electronic Data Interchange and electronic document management software and services today announced that its Board of Directors has authorized a ten-for-one stock split of the Company’s common stock.  All shareholders of record on November 30, 2009 will receive 10 shares in exchange for each share held on that date. The Company’s Certificate of Incorporation will be amended to increase the number of authorized common shares to 100,000,000 in order to carry out the stock split.

The Board of Directors also declared the payment of $.03 per share (after the ten-for-one stock split) cash dividend, payable in three installments of $.01 each by no later than December 31, 2009, June 30, 2010, and December 31, 2010.  The $.03 per share cash dividend, which will total approximately $2 million, is equivalent to a $.30 dividend per share prior to the ten-for-one stock split.

In addition, the Company requested, and was granted, a change to the Company’s trading symbol from ADVC to ADVC effective on Monday, November 2, 2009.

Jason K. Wadzinski, Chairman, Chief Executive Officer, and President, remarked, “The purpose of the cash dividend is to reward the Company’s shareholders, many of whom have been shareholders for a very long time, and to enable them to likely take advantage of favorable Federal income tax treatment that is scheduled to expire at the end of 2010.  The cash dividend for shareholders who hold the stock long enough to receive all three installments represents a 21% return on investment based on the most recent closing price of the Company’s stock of $1.39.

“The purpose of the ten-for-one stock split is to increase the number of shares available in the public float to provide the potential for additional market liquidity for our stock”, continued Mr. Wadzinski.

I don't understand the stock split decision at all. Seems nutty to me.
Title: Re: ADVC Advant-e Corp.
Post by: ItsAValueTrap on October 19, 2012, 02:05:27 AM
I like the fact that they pay dividends and sometimes buy back shares.  With a lot of microcap (microcrap?) stocks, they won't pay dividends or use buybacks so that the money can go to the CEO and other insiders.

2- How did this company come about?  Is looks like it emerged from the wasteland of the dot-com bubble?  It used to lose money... then hit the critical mass needed to start making money.

Quote
I don't understand the stock split decision at all. Seems nutty to me.
Haha.
Title: Re: ADVC Advant-e Corp.
Post by: LC on October 19, 2012, 08:39:56 AM
Just to clear up my response:

I was using net income numbers, not ebit and I lumped the two executives compensation together for a total of $400k.

I like the business I just don't know where the margin of safety is.
Title: Re: ADVC Advant-e Corp.
Post by: infinitee00 on October 19, 2012, 12:48:43 PM
ADVC is an interesting company. Margins and returns look fantastic and valuation is low in comparison. I have had ADVC on my radar for quite some time after reading the thesis on Value Uncovered. Take a look

http://www.valueuncovered.com/advant-e-advc-ob-value-in-a-micro-cap-tech-stock (http://www.valueuncovered.com/advant-e-advc-ob-value-in-a-micro-cap-tech-stock)

However, I have been waiting for the 'right' price ( nothing fancy, just shooting for the lower end of its 52 week low price) which would be $0.2/$0.21- which it never drops to. Volume is very low and some days have 0 shares traded. I bid for some shares when it dropped to $0.22 but my orders never got filled.

Good luck.
 
Title: Re: ADVC Advant-e Corp.
Post by: alpha23 on October 19, 2012, 01:56:50 PM
ADVC is an interesting company. Margins and returns look fantastic and valuation is low in comparison. I have had ADVC on my radar for quite some time after reading the thesis on Value Uncovered. Take a look

http://www.valueuncovered.com/advant-e-advc-ob-value-in-a-micro-cap-tech-stock (http://www.valueuncovered.com/advant-e-advc-ob-value-in-a-micro-cap-tech-stock)

However, I have been waiting for the 'right' price ( nothing fancy, just shooting for the lower end of its 52 week low price) which would be $0.2/$0.21- which it never drops to. Volume is very low and some days have 0 shares traded. I bid for some shares when it dropped to $0.22 but my orders never got filled.

Good luck.

Nice. Thanks for sharing the article.

I had a limit order in for .245 for a while and then calculated the difference and weighed the risks and decided to take a starter position now and add as it drops (as it did today, slightly). I figure that the downside risk is minimized by the business moat, no debt and cash cushion, and there is a significant upside possible in the auto and other businesses. The valuation is quite low, especially for margins like Edict has. If they just keep growing at around 4% and keep margins at ~27%, it should be a double in 4 years or so. 
Title: Re: ADVC Advant-e Corp.
Post by: ItsAValueTrap on November 05, 2012, 11:04:44 PM
WOW

http://www.advant-e.com/press/2012/110512.html

Quote
Advant-e Corporation Announces Corporate Actions in Preparation to Voluntarily Suspend its Obligation to File Reports with the SEC
1-for-10,000 Reverse Stock Split followed by a 1,000-for-1 Forward Stock Split; Up to $2 Million Share Repurchase; and a Potential Special Cash Dividend
DAYTON, Ohio, November 5, 2012 -- Advant-e Corporation (OTCQB: ADVC) today announced that its Board of Directors and a majority of its outstanding shares have authorized a 1-for-10,000 reverse stock split followed by a 1,000-for-1 forward stock split and a $2,000,000 share repurchase program. The Board is also considering payment of a potential special cash dividend pending the results of the stock splits, the share repurchase program and the Company's cash flow. These corporate actions are being undertaken in preparation to voluntarily suspend the Company's obligation to file periodic reports with the Securities and Exchange Commission.

The Board approved these actions and the decision to voluntarily suspend its public reporting obligations due to many factors, including the Company's size and the lack of sufficient liquidity in the market for its common stock, but also the high cost of complying with SEC rules, regulations and procedures and eliminating the requirement to disclose certain competitive business information. The Company intends to file Form 15 with the SEC as soon as practical after the consummation of the reverse stock split, regardless of the outcome of the stock repurchase program, to complete the voluntary suspension of its public reporting obligations.

The Board and a majority of the Company's outstanding shares have approved amendments to the Company's certificate of incorporation in connection with the reverse stock split and the forward stock split. Shareholders who would otherwise hold a fractional share will instead receive a cash payment of $0.27 per share in lieu of a fractional share. The Company estimates the cost of purchasing the fractional shares from its shareholders at approximately $365,000, which represents approximately 1,300,000 pre-reverse stock split shares. The date of the reverse and forward stock splits will be announced at a later date pending regulatory compliance. The Company expects to file a Schedule 14C Information Statement with the SEC further describing the reverse and forward stock splits shortly. The Board of Directors has reserved the right to abandon the proposed reverse and forward stock split at any time prior to their effective date if it believes them to no longer be in the best interest of the Company or its shareholders.

Following the reverse and forward stock splits, there will be an estimated 75 remaining shareholders of record. Although the Company currently has fewer than 500 shareholders of record, the purpose of this action is to provide small shareholders with a liquidity event whereby their shares will be converted to cash at a 4.11% premium based on the average closing price for the 30 trading days prior to this announcement and a 7.9% premium based on the average closing price for the 90 trading days prior to this announcement.

In connection with the share repurchase program, the Company expects to purchase up to $2,000,000 worth of its common stock on the open market while the company is still trading on the OTCQB market or in privately negotiated transactions. The program is designed to give other shareholders the opportunity to sell some or all of their shares.

The Board is also considering the payment of a special cash dividend. The Board anticipates that, if the dividend is declared, it would be paid in December 2012. The dividend is dependent on the outcome of the reverse stock split, the share repurchase program and the Company's cash flow.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, "We became a public company in 2000 to raise capital to help us complete our transition from a software provider to an Internet-based supply chain services provider. We are very grateful to our investors who risked their capital to enable us to execute our business plan."

"Given the lack of liquidity in the market for our shares and the absence of a need for us to raise capital in the foreseeable future, the Board of Directors has determined that maintaining our public presence is not in the best interest of the Company and our shareholders," continued Mr. Wadzinski. "While the number of current shareholders of record would allow us to voluntarily suspend our SEC reporting requirements without these corporate actions, we believe that the reverse stock split and share repurchase program provide an opportunity for many of those shareholders who do not want to own shares in a non-reporting company to convert some or all of their shares into cash."
Title: Re: ADVC Advant-e Corp.
Post by: ItsAValueTrap on December 14, 2012, 02:15:11 PM
Advant-e Corporation Announces $.02 per share Special Cash Dividend; Update on Corporate Actions

http://www.advant-e.com/press/2012/121212.html

Quote
Advant-e Corporation Announces $.02 per share Special Cash Dividend; Update on Corporate Actions
Dividend to be paid on December 28, 2012 to shareholders of record as of December 18, 2012
DAYTON, Ohio, December 12, 2012 -- Advant-e Corporation (OTCQB: ADVC) today announced that its Board of Directors declared the payment of $.02 per share special cash dividend, payable on December 28, 2012 to shareholders of record as of December 18, 2012.  The $.02 per share cash dividend will total approximately $1.3 Million.

The Company also provided the following update to Corporate Actions that were announced on November 5, 2012:

$2 million Share Repurchase Program – As of December 11, 2012, the Company has repurchased 4.3 million shares at a cost of $1.1 million at an average cost of approximately $.26 per share.  As a result, $.9 million remains available for purchase of shares on the open market or in privately negotiated transactions.

Forward/Reverse Split – On November 30, 2012 the Company filed a Preliminary 14C with the SEC.  Upon completion of the SEC’s review, the Company will file a Definitive 14C and mail it to the Company’s shareholders.  Approximately twenty days after the mailing of the Definitive 14C, the Company will effect a 1-for-10,000 reverse split of its shares followed immediately by a 1,000-for-1 forward split.  Shareholders holding a fractional share after the reverse stock split will be cashed out at $.27 per share on a pre-split basis.  The reverse/forward split was approved by the written consent of the holders of 62% of the issued and outstanding shares of Common Stock.

Voluntary Suspension of the Company’s Obligation to File Reports with the SEC – As soon as practical after the Reverse/Forward splits, the Company intends to file a Form 15 with the SEC thereby suspending public reporting obligations.
Mr. Jason K. Wadzinski, Chairman and CEO of Advant-e stated, “We continue to make progress on our previously announced corporate actions.  Because we are paying a special cash dividend prior to the completion of the reverse and forward splits, the $.02 per share dividend will be taken into account for the remainder of the share repurchase program.”
Title: Re: ADVC Advant-e Corp.
Post by: Hielko on December 14, 2012, 02:33:35 PM
Weirdly enough they decided to cancel the reverse/forward split just 24h after posting the press release quoted above.
Title: Re: ADVC Advant-e Corp.
Post by: ItsAValueTrap on December 14, 2012, 02:52:27 PM
Where does it say that?
Title: Re: ADVC Advant-e Corp.
Post by: Hielko on December 14, 2012, 02:54:21 PM
http://finance.yahoo.com/news/advant-e-corporation-announces-reverse-204100711.html
Title: Re: ADVC Advant-e Corp.
Post by: ItsAValueTrap on December 14, 2012, 02:57:37 PM
Thanks a lot... I missed that!!!

Well... there goes this arbitrage trade.
Title: Re: ADVC Advant-e Corp.
Post by: Olmsted on December 15, 2012, 09:31:22 AM
Wow!  I was waiting for a day when the spread widened a little bit to put the arbitrage on.  It widened Friday morning - I'm real glad I checked the news first.
Title: Re: ADVC - Advant-e Corp.
Post by: ItsAValueTrap on March 27, 2013, 09:31:24 AM
http://www.advant-e.com/press/2013/032613.html

Their press release for their annual earnings is out.  I see $1.6M in share repurchases... no share repurchases show up in the latest 10Q on SEC EDGAR.  How did they buy so much stock in the last quarter of 2012?

$1.6M in repurchases is a lot since their GAAP net income for 2012 is $2.0M and this stock ain't exactly liquid.  On many days only a few hundred dollars of the stock is traded.
Title: Re: ADVC - Advant-e Corp.
Post by: Hielko on March 27, 2013, 09:37:18 AM
Lots of liquidity at the end of last year with all kinds of news/corporate actions going on.
Title: Re: ADVC - Advant-e Corp.
Post by: ItsAValueTrap on March 27, 2013, 09:46:07 AM
I haven't calculated it but it doesn't look like there's enough liquidity there.  Remember that companies can only buy back a certain % of the trading volume due to regulations.

They are allowed to buy more shares in privately-negotiated block trades.  I guess when the 10-K comes out I might be able to answer my question.
Title: Re: ADVC - Advant-e Corp.
Post by: PSDFinancier on August 05, 2013, 07:56:34 PM
Hey guys,

Are folks still long ADVC since they announced they're going dark? It's a fabulous business, and I don't necessarily mind continuing to hold shares, but would at least like to know that I get an annual report once a year to see how things are going. Has anyone talked to ADVC management to see if they will at least continue to provide annuals?

Best,
PSDFinancier
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on August 06, 2013, 07:30:53 PM
Anyone knows what's going on? Up 17% in 2 weeks.
Title: Re: ADVC - Advant-e Corp.
Post by: PSDFinancier on September 27, 2013, 02:20:53 PM
Don't know that there was any news in particular...think someone noticed how good the business is on a FCF and ROIC/ROE basis when you spread the financials and started buying. I really wish these guys weren't going private...kind of a shame given how good performance has been, and how much of a pain it will be to keep track of going forward
Title: Re: ADVC - Advant-e Corp.
Post by: alpha23 on April 24, 2014, 01:06:02 PM
Advant-e declared a $.02 / share dividend and $1.2M share repurchase plan today: http://www.advant-e.com/press/2014/042414.html

I notice that I am much less comfortable with this company since they have "gone dark" ( http://www.advant-e.com/press/2013/050113.html ), despite the fact that in my opinion, they have a superior business model and are a rare example of "network effect". I am still holding shares (and they have appreciated considerably since my initial purchase / add), just not as much conviction.

Does anyone on the board have experience with innovative ways to track companies that have gone dark?

Cheers,
Paul
Title: Re: ADVC - Advant-e Corp.
Post by: ItsAValueTrap on April 24, 2014, 01:14:07 PM
Going dark makes sense though.  The overhead costs associated with being publicly listed is a drag on performance.  The overhead is in the ballpark of 1%/year of ADVC's market cap.
Title: Re: ADVC - Advant-e Corp.
Post by: alpha23 on April 24, 2014, 01:19:36 PM
Going dark makes sense though.  The overhead costs associated with being publicly listed is a drag on performance.  The overhead is in the ballpark of 1%/year of ADVC's market cap.

Right, from an operating perspective, I'm all for it. I am just wondering how to keep tabs on the company now.
Title: Re: ADVC - Advant-e Corp.
Post by: Hielko on April 24, 2014, 02:26:08 PM
Does it really matter if a company reports 4 times/year or just once?

I think you need to give management a little bit of trust, and the fact that they are willing to pay dividends and buyback shares are imo a good indication that this is a management team that you can trust.
Title: Re: ADVC - Advant-e Corp.
Post by: alpha23 on April 24, 2014, 04:01:58 PM
Does it really matter if a company reports 4 times/year or just once?

I think you need to give management a little bit of trust, and the fact that they are willing to pay dividends and buyback shares are imo a good indication that this is a management team that you can trust.

Is there a once-a-year filing requirement for companies that file a Form 15? As far as I can tell, filing Form 15 relieves the company of the requirement to file 10-Ks as well as Qs, etc. I would be reasonably satisfied with just 10-Ks. As far as management, I am more of a "trust, but verify" sort of investor.

Quote
Obligations in the 90 day period prior to effectiveness of deregistration. Obligations to file Form 10-Ks, 20-Fs, 10-Qs, 8-Ks and 6-Ks, as applicable to a particular issuer, are suspended immediately upon filing of the Form 15. However, other Exchange Act filing obligations continue during the 90 day period following the filing of the Form 15 (or Form 25 to deregister under Section 12(b)). Foreign private issuers that were previously registered under Section 12(b) or 12(g) will continue to be subject to Section 13(d) and Section 13(e) requirements, which includes the very onerous going private Rule (Rule 13e-3) during the 90 day period. U.S. issuers (or non-U.S. issuers that fail to qualify as foreign private issuers) will also continue to be subject to the proxy rules and Section 16 reporting and short swing profit requirements. Issuers that were reporting only under Section 15(d)—because they have had an effective registration statement (e.g., covering debt securities)—would not be subject to these additional requirements during the 90 day period.

Title: Re: ADVC - Advant-e Corp.
Post by: Hielko on April 24, 2014, 04:55:49 PM
Does it really matter if a company reports 4 times/year or just once?

I think you need to give management a little bit of trust, and the fact that they are willing to pay dividends and buyback shares are imo a good indication that this is a management team that you can trust.

Is there a once-a-year filing requirement for companies that file a Form 15? As far as I can tell, filing Form 15 relieves the company of the requirement to file 10-Ks as well as Qs, etc. I would be reasonably satisfied with just 10-Ks. As far as management, I am more of a "trust, but verify" sort of investor.

Quote
Obligations in the 90 day period prior to effectiveness of deregistration. Obligations to file Form 10-Ks, 20-Fs, 10-Qs, 8-Ks and 6-Ks, as applicable to a particular issuer, are suspended immediately upon filing of the Form 15. However, other Exchange Act filing obligations continue during the 90 day period following the filing of the Form 15 (or Form 25 to deregister under Section 12(b)). Foreign private issuers that were previously registered under Section 12(b) or 12(g) will continue to be subject to Section 13(d) and Section 13(e) requirements, which includes the very onerous going private Rule (Rule 13e-3) during the 90 day period. U.S. issuers (or non-U.S. issuers that fail to qualify as foreign private issuers) will also continue to be subject to the proxy rules and Section 16 reporting and short swing profit requirements. Issuers that were reporting only under Section 15(d)—because they have had an effective registration statement (e.g., covering debt securities)—would not be subject to these additional requirements during the 90 day period.
They are not required to file a form 10-K, but you are entitled to some sort of annual report if you are a shareholder.
Title: Re: ADVC - Advant-e Corp.
Post by: alpha23 on May 09, 2014, 12:05:42 PM
Annual letter and 2013 performance results attached.

6% revenue increase vs 2012 and 20% earnings increase. Looking solid, and earnings are double what they were in 2010, margins continuing upward march.

Title: Re: ADVC - Advant-e Corp.
Post by: ItsAValueTrap on May 10, 2014, 10:46:29 AM
How do you get the shareholder letter and annual report?

They don't seem to publish it on the website.
Title: Re: ADVC - Advant-e Corp.
Post by: alpha23 on May 10, 2014, 02:53:22 PM
How do you get the shareholder letter and annual report?

They don't seem to publish it on the website.

I wrote to the company (the CFO wrote back to me) and requested them. He said that they had been sent to the printer and would be out within 10 days (that was 9 days ago), but I actually got the materials through my brokerage (ETRADE for that account) in the end. Hope that helps.

I'm a little puzzled about their reasoning for not publishing these materials on their website. They seem to me to be the epitome of a company that is not interested in publicizing their stock.

Cheers,
Paul
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on May 29, 2015, 06:46:02 AM
Has anyone received the 2014 annual report?
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on May 29, 2015, 07:17:27 PM
Not yet. I think last year I got it around mid-May.
Title: Re: ADVC - Advant-e Corp.
Post by: alpha23 on May 29, 2015, 10:39:05 PM
I wrote to them today and they replied that the annual report will be shipped to shareholders on Monday.
Title: Re: ADVC - Advant-e Corp.
Post by: alpha23 on June 03, 2015, 05:59:29 PM
Has anyone received the annual report yet? I seem to have some delivery issues (they seem to be partying like its 1999) with my brokerage that I don't quite have sorted. If you do have one, I'd appreciate a copy.

Cheers!
Paul
Title: Re: ADVC - Advant-e Corp.
Post by: ItsAValueTrap on June 04, 2015, 02:26:32 PM
Here's their consolidated financials:
http://www.proxydocs.com/0/000/898/052/advante_corporation_642015.pdf

Shareholder letter at the very end.
Title: Re: ADVC - Advant-e Corp.
Post by: alpha23 on June 04, 2015, 03:03:11 PM
Here's their consolidated financials:
http://www.proxydocs.com/0/000/898/052/advante_corporation_642015.pdf

Shareholder letter at the very end.

Thanks a million IAVT!
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on June 25, 2015, 03:57:13 AM
I have a strange problem. Hope you guys can help.

I received a letter from a company called Issuer Services Group with the stamp chop dated Jun 9, 2015. On the envelope it says "Important Shareholder Information Enclosed". But the envelope is empty! There is nothing inside! So I have no idea what it's about.

One likely possibility is it's something for Advant-e.

I'm wondering if you guys have received anything for Advant-e via Issuer Services Group?

Thanks
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on June 25, 2015, 06:17:56 AM
I have a strange problem. Hope you guys can help.

I received a letter from a company called Issuer Services Group with the stamp chop dated Jun 9, 2015. On the envelope it says "Important Shareholder Information Enclosed". But the envelope is empty! There is nothing inside! So I have no idea what it's about.

One likely possibility is it's something for Advant-e.

I'm wondering if you guys have received anything for Advant-e via Issuer Services Group?

Thanks

No, I have not.
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on June 25, 2015, 07:27:00 PM
I have a strange problem. Hope you guys can help.

I received a letter from a company called Issuer Services Group with the stamp chop dated Jun 9, 2015. On the envelope it says "Important Shareholder Information Enclosed". But the envelope is empty! There is nothing inside! So I have no idea what it's about.

One likely possibility is it's something for Advant-e.

I'm wondering if you guys have received anything for Advant-e via Issuer Services Group?

Thanks

No, I have not.

Mystery solved. I contacted Issuer Services Group. They immediately found the communication and sent it to me electronically. It's actually for SODI, not ADVC.  :D
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on November 16, 2015, 12:55:05 PM
Anyone know of any facts justifying the recent decline here?  I think Advant-E is now trading around 4.5x EV/EBIT, which seems incredibly low in light of the business's historic performance.
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on November 16, 2015, 02:04:41 PM
Anyone know of any facts justifying the recent decline here?  I think Advant-E is now trading around 4.5x EV/EBIT, which seems incredibly low in light of the business's historic performance.

Haven't heard anything. So, trailing P/E adjusted for goodwill writedown is about 10x. That's cheap.

Too bad that it's already a really big position in one of my accounts. I had some long-standing sell orders at about ~0.70 to trim the position but no one took my bait. And for my another account, it's using IB of which the transaction cost is ridiculous for penny stocks.  :(
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on November 16, 2015, 03:02:50 PM
Anyone know of any facts justifying the recent decline here?  I think Advant-E is now trading around 4.5x EV/EBIT, which seems incredibly low in light of the business's historic performance.

Haven't heard anything. So, trailing P/E adjusted for goodwill writedown is about 10x. That's cheap.

Too bad that it's already a really big position in one of my accounts. I had some long-standing sell orders at about ~0.70 to trim the position but no one took my bait. And for my another account, it's using IB of which the transaction cost is ridiculous for penny stocks.  :(

Yep, I think the ex-cash P/E is around 7 or 8.  Crazy for a growing, asset-light business.  I left IB because it was so difficult to trade stocks like ADVC. 
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on November 16, 2015, 04:06:41 PM
Anyone know of any facts justifying the recent decline here?  I think Advant-E is now trading around 4.5x EV/EBIT, which seems incredibly low in light of the business's historic performance.

Haven't heard anything. So, trailing P/E adjusted for goodwill writedown is about 10x. That's cheap.

Too bad that it's already a really big position in one of my accounts. I had some long-standing sell orders at about ~0.70 to trim the position but no one took my bait. And for my another account, it's using IB of which the transaction cost is ridiculous for penny stocks.  :(

Yep, I think the ex-cash P/E is around 7 or 8.  Crazy for a growing, asset-light business.  I left IB because it was so difficult to trade stocks like ADVC.

Had they not cancelled the reverse split... That was still a mystery. :(
Title: Re: ADVC - Advant-e Corp.
Post by: Poor Charlie on January 21, 2016, 12:57:08 PM
Any news on the dividend?

They paid .03 last Jan but I haven't heard anything for this year.   
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on February 18, 2016, 01:29:21 PM
I also have still heard nothing.  Anyone have any news?
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on April 29, 2016, 06:50:00 AM
The 2015 financial statements are attached.  Short version:  Essentially no top-line growth along with gross margin compression caused EBIT to about $500k to ~$4 million and net income is about $2.6 million. 

ADVC now has about $7 million in cash and 58.8 million shares outstanding.  At $.55/share, the market cap is $32 million, EV is $25 million.  So, about 12x P/E or 10x ex-cash. 
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on June 10, 2016, 11:19:43 AM
The Company is executing a 1 for 10,000 reverse split and cashing out all resulting fractional interests at $.50/share. 

http://www.prnewswire.com/news-releases/advant-e-corporation-announces-reverse-stock-split-followed-by-mandatory-cash-out-of-fractional-shares-and-forward-stock-split-300282992.html
Title: Re: ADVC - Advant-e Corp.
Post by: NeverLoseMoney on June 10, 2016, 06:06:29 PM
The Company is executing a 1 for 10,000 reverse split and cashing out all resulting fractional interests at $.50/share. 

http://www.prnewswire.com/news-releases/advant-e-corporation-announces-reverse-stock-split-followed-by-mandatory-cash-out-of-fractional-shares-and-forward-stock-split-300282992.html
Wow, the same stunt they tried to pull 3 1/2 years ago: http://otcadventures.com/?p=383. In the end they didn't go through with the reverse split, it was cancelled for some unexplained reason. Threat of lawsuits maybe?

Now they actually pulled a fast one and screwed small shareholders out of their shares. I don't think there has been any prior announcement about this reverse split, so if you held less than 10,000 shares you had no option to at least try to buy some more to reach the 10k threshold and prevent a forced cash-out. A nice way for Mr. Wadzinski to buy in $500k worth of very illiquid stock well below intrisic value from small investors who can't do anything about it.

And then he proceeds to give them the middle finger in the press release as well:

Quote
Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, "We are very grateful to all our shareholders, who risked their capital to help us execute our business plan.  We trust that this company action will provide small shareholders with liquidity as their shares are converted to cash at $.50 per share, the approximate current market price."

A nice way of showing your gratefulness! I think small shareholders would have been a lot happier receiving something that approximates intrinsic value for their shares rather than the approximate current market price.

He can execute this same trick again in the future, so the value of the company for relatively small shareholders that have not been cashed out is permanently impaired in my opinion. It probably already was, given their earlier actions, but they did not go through with that reverse split. As a small shareholder, now you know for sure they'll show no hesitation to screw you. Only if you can afford to fight the company in court in a future episode like this can you hope to receive fair value for your shares.
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on June 20, 2016, 07:26:19 PM
My guess is, they cancelled the previous attempt because they were pissed off by the opportunists trying to take advantage of arbitraging the odd lots. Hence, they made it secretive this time. If Wadzinski really wanted to screw small investors intentionally, the last reverse split attempt would've been done secretly. I would say small investors are collateral damage here.

The Company is executing a 1 for 10,000 reverse split and cashing out all resulting fractional interests at $.50/share. 

http://www.prnewswire.com/news-releases/advant-e-corporation-announces-reverse-stock-split-followed-by-mandatory-cash-out-of-fractional-shares-and-forward-stock-split-300282992.html
Wow, the same stunt they tried to pull 3 1/2 years ago: http://otcadventures.com/?p=383. In the end they didn't go through with the reverse split, it was cancelled for some unexplained reason. Threat of lawsuits maybe?

Now they actually pulled a fast one and screwed small shareholders out of their shares. I don't think there has been any prior announcement about this reverse split, so if you held less than 10,000 shares you had no option to at least try to buy some more to reach the 10k threshold and prevent a forced cash-out. A nice way for Mr. Wadzinski to buy in $500k worth of very illiquid stock well below intrisic value from small investors who can't do anything about it.

And then he proceeds to give them the middle finger in the press release as well:

Quote
Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, "We are very grateful to all our shareholders, who risked their capital to help us execute our business plan.  We trust that this company action will provide small shareholders with liquidity as their shares are converted to cash at $.50 per share, the approximate current market price."

A nice way of showing your gratefulness! I think small shareholders would have been a lot happier receiving something that approximates intrinsic value for their shares rather than the approximate current market price.

He can execute this same trick again in the future, so the value of the company for relatively small shareholders that have not been cashed out is permanently impaired in my opinion. It probably already was, given their earlier actions, but they did not go through with that reverse split. As a small shareholder, now you know for sure they'll show no hesitation to screw you. Only if you can afford to fight the company in court in a future episode like this can you hope to receive fair value for your shares.
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 on July 14, 2016, 10:21:24 AM
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
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on July 14, 2016, 12:51:57 PM
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? 
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 on July 15, 2016, 08:28:34 AM
Good point...

Are you a shareholder?

AOA
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on July 15, 2016, 10:37:44 AM
Good point...

Are you a shareholder?

AOA

Yes
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on March 08, 2017, 04:24:48 PM
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?  :-\
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on March 08, 2017, 05:35:59 PM
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.
Title: Re: ADVC - Advant-e Corp.
Post by: NeverLoseMoney on March 09, 2017, 05:03:15 AM
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.
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on March 09, 2017, 06:24:59 AM
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.
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on March 13, 2017, 08:16:44 PM
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.
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 on April 10, 2017, 11:37:07 AM
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
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 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.
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 on April 11, 2017, 11:30:09 AM
I emailed the CFO
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 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.
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 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

Title: Re: ADVC - Advant-e Corp.
Post by: Poor Charlie 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 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. 


Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 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 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.
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 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

Title: Re: ADVC - Advant-e Corp.
Post by: Poor Charlie 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 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. 
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 on April 24, 2017, 02:46:04 PM
Anyone receive financials yet?

AOA
Title: Re: ADVC - Advant-e Corp.
Post by: KJP 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.
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 on April 25, 2017, 07:43:29 AM
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
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on October 04, 2017, 09:45:42 AM
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.
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on January 25, 2018, 07:46:33 AM
Looks like a $0.40/share dividend was declared yesterday.
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on April 17, 2018, 07:13:20 AM
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.
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on July 30, 2018, 04:26:21 AM
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.
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 on August 08, 2018, 08:59:44 AM
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!
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on August 09, 2018, 11:59:46 PM
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.
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on August 10, 2018, 12:08:07 AM
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?
Title: Re: ADVC - Advant-e Corp.
Post by: KJP on August 10, 2018, 03:45:56 AM
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.
Title: Re: ADVC - Advant-e Corp.
Post by: portfolio14 on August 10, 2018, 06:12:25 AM
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!
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 on August 14, 2018, 12:17:45 PM
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
Title: Re: ADVC - Advant-e Corp.
Post by: aalexa1225 on November 12, 2018, 06:36:42 PM
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!