RE: RE: Advantex We learned it the hard way.
Like Futura, too much debt for Advantex. Any current financing is by debt. They say this in their recent MD&A report. Buying out Futura was probably financed by debt. Can't be equity financing, as the stock price is only one cent.
Number of shares out there, is 152 million? Penny stock forever unless a rollback happens. Close parallel with Futura unfortunately. To start, Aeroplan will provide gross revenues of about $1.7 million, but by the time Aeroplan is paid their cut and admin/selling/marketing expenses factored in, maybe a small profit is realized.
They also are Aeroplan resellers, so it's a natural, but no guarantee of success. Might be some incremental improvements to the bottom line, but ever increasings debt levels and interest charges will negate that.
Yes for a moment I was tempted to buy ADX. At best, they did a better job of marketing Aeroplan than Futura. But maybe the specific industry categories helped Advantex get ahead. The auto industry category is a tough one for a loyalty program to succeed. However, have to give ADX credit for showing a profit.
Maybe good for speculators. who wish to play the extreme pennies. But the company is in extreme penny territory for a reason, so conduct yourselves accordingly.
Say