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 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 |
