I will try to keep this page updated with current relevant info so you may want to check it everyday. I put the date at the top so that you know which is the latest up to date info.
*******Update November 22.2000 *********
large equity placement by CIBC and AC and portal deals , Huge news . Add Us Airways deal and ADX goes from 600,000 customers to over 27 million . A 4500% increase in 12 month.
newswire.ca
From the release :
BOARD REPRESENTATION
As part of these agreements, Rupert Duchesne, President of Air Canada's Aeroplan Division representing Air Canada, and Christine Croucher, Executive Vice President of CIBC's VISA card products division representing CIBC, will join Advantex's Board of Directors.
"We are pleased to welcome Rupert Duchesne and Christine Croucher to our Board of Directors," said Munger. "Their participation on our Board confirms the depth and breadth of our relationship with both Air Canada and CIBC, highlighting the confidence and strong commitment that both of these companies are making to Advantex and our future."
RIGHTS TO ACQUIRE SIGNIFICANT EQUITY POSITIONS
Air Canada and CIBC have been granted rights to acquire significant equity positions in Advantex over a five-year period.
Advantex has agreed to issue to each of Air Canada and CIBC warrants to purchase 7.5 million Advantex common shares, at an exercise price of $1.08 per share, exercisable over a five-year period, in consideration of their entering into five-year commercial agreements.
Advantex has also agreed to issue Air Canada and CIBC additional warrants to purchase up to 55 million Advantex common shares over the same five-year period. The number of warrants issued each year will be based on the contribution that both Air Canada and CIBC make to Advantex's annual revenue growth. The exercise price of the earned warrants issued each year will be based on the prevailing market prices at the time of issue. The 70 million common shares which may be purchased by Air Canada and CIBC represent
approximately 58% of Advantex common shares on a fully diluted basis.
Heres a post on SH regarding impact of US Airways deal alone now add CIBC and AC to that .
stockhouse.ca
*******Update November 9.2000 *********
Advantex reports strong Q1 2001, net income triples
newswire.ca
From release:
US Airways will provide Advantex with direct online marketing access to more than 20 million Dividend Mile frequent flyers and their families, a significant opportunity with enormous potential revenue streams from online transactions, advertising and permission marketing.
We expect other agreements to follow shortly. Advantex is aggressively moving forward with its Internet strategy and will continue to pursue relationships with major organizations around the world," said Munger.
*********Update November 2.2000 ***************
Todays close $1.06 market cap $42.4 million CND
Sales 2000 year end $67 million , up 67% from 1999
Loss before amortization and interest reduced to $165,000 compared to a loss of $871,000 in 1999
newswire.ca
CIBC soars miles ahead with new CIBC Aerogold VISA for Business
Cibc Business card allows users all the benefits of the ADVANTEX /Aeroplan card. This deal has the potential to double ADX's current offline customer base from curerent 600,000 to over 1.2 million users. Business people tend to dine and fly twice as much (if not more )then your typical individual card user. Also , with the cheap rates that CIBC is providing business people for additional cards to give to their employees, even more individulas will have acces to the card through employment which will further increase ADX's customer base.
Bottom line , even without Advantex adding any new locations to use the card , the customer base increase will generate plenty of top line growth for the Advantex Division. This Division is in operation now and generated an increase in revenue of 67% last year. We don't have to wait for a
portal opening to benefit from this news .
*********Update October 28.2000 ******************
ADX Will be on ROBTV 7:50Am Monday OCT 30.2000
robtv.com
********Update October 25.2000 *******************
Subject: Revenue projection possibilities from US Airways deal
stockhouse.ca
*************Update October 19.2000 **************
Today Groome reported on ADX , looks good.
groomecapital.com
Have a close look at the Smartbar technolgy section in the discussion. It is very important in that it will be the key part of the new Evantex Division platform.
This is from the Groome Capital report (Oct.19.2000):
The online growth potential - through revenue sharing agreements with large affinity groups,such as international airlines - positions Advantex in an enviable position vis-a-vis its US competitors, which for the most part, lack the purchasing potential generated from such a large customer base.
Groome also reported on MTP and gave them a 8.25 /share 12 month target. With 107 million shares outstanding that will give MTP a $882 million market cap.
ADX closed today $1.43 which translates into a market cap of $57 million .
Update October 18.2000
ADX has officially announced October 18.2000 that the unnamed Us airline is US Airways .
newswire.ca
As well they reported revenue growth of 67% Yr over Yr
newswire.ca
We now can say that Adx has over 21 Million customers,(3500% growth) up from 600,000 for FY 2000 thanks to the signed US Airways deal.
Current market capitalization at $1.35 is $54 million CND .
At this valuation the market is giving zero value for the US Airways deal, the soon to be announced CIBC deal and Ac deal. It is also giving ADX no premium for current consistent high double digit growth.
As well, today VISA announced that they will provide online purchase protection.
"New Policy Eliminates Fraud Liability
For Visa Consumer Cardholders In Canada"
newswire.ca
According to this Visa release :
While online shopping is expected
to grow to $8.4 billion by 2002 in Canada, and consumer confidence in the
Internet is growing, industry studies show that 67% of Canadian shoppers still
continue to perceive the Internet as insecure. This perception remains the
most significant barrier to the growth of consumer e-commerce.
The policy has been introduced to coincide with the launch of the largest
Visa consumer online-shopping promotion in Canada to date. The $1 million-plus
program will run from November 1 to December 25
It looks like the CIBC portal could be lauched by end of October to coincide with nationwide promotion by VISA Canada.
I firmly believe that the Evantex division can generate $60 million /year .
Don't forget that those revenues would be comparible to Advantex Division net sales. Adx reported gross sales of $67 Million today but net sales are closer to
$11 million after deducting cost of goods. So For Advantex Division to generate $60 million in net revenue it would have to do $400 million in gross sales to
be comparable to Evantex Division $60 million.
It appears that ADX will be reporting high double if not triple digit revenue gains for the foreseable future which will positively affect bottom line profits because profit margins in the Evantex division will be much larger than the Advantex division and costs to operate will be much lower.
I cannot believe we will be able to buy ADX at these prices for much longer IMO.
Vitalsigns
P.s most discussions are happening on the SH board
stockhouse.ca |
