Andiamo Corp. (ANDI)

[Focus7]

TITL - Office tour by CEO, Sorry about the repost guys but I think this is good info for people that are new to this stock and just showing up.


Posted by: CollegeGrad22 Member Level Date: Wednesday, July 21, 2010 3:22:10 AM
In reply to: None Post # of 7680 Send a link via email Share on Facebook Tweet this post
Ok, so as many of you know I met with the CEO, Dustin Secor today at the Accu-Title Headquarters in Pinellas Park, FL (not far from my house). We met for about an hour in his office and he gave me a quick tour of the headquarters, which is actually a rather large 2 story building nestled on 5 acres of land in a very busy part of town. I have to admit, I was very impressed at the professionalism of Dustin and the office. You could tell that the building was not one of a company that appeared to be cash strapped by any means. On the other end, it also did not appear that the company is overindulging by wasting money on unnecessary resources. PICTURES POSTED BELOW!!!!!!

We met at around 4:45pm and although at first there were a handful of employees present (about 5), they started filing out shortly thereafter around 5:00pm just like any other ordinary corporate business. The office appeared to be a very down to earth and relaxing work environment. There was a board room and receptionist desk on the first floor just as you walk through the main door. Once you pass this area there were a group of cubicles (about 6-8 from what I could see) and a staircase heading up to the 2nd floor where there were several of offices and more cubicles (another 4-6, I think). It appeared that there were a few rooms being used for filing. Although I didn't get a good look, there were filing cabinets and tons of boxes full of files. As you know, closing documents tend to be rather large which fully would explain this. One quick thing I picked up on is this building is already equipped for growth. Had plenty of space available that was not currently in use, but the infrastructure was in place. Before they went public and the Real Estate market crashed in Florida a few years ago, they had many more employees (Dustin brought this up and I will get more into this later).

Dustin led me to his office which was rather large (I'd say it is about 600-700 square feet in size). He had a U-shaped desk with papers, charts, and documents all over the place (not messy by any means, just shows he is a busy guy). He had lots of pictures of his family and awards/degrees/certifications on his wall. Behind his desk is a huge fish statue on his wall. I quickly realized he enjoys fishing as he had several of these located throughout the building. On the left side of his office he had a sofa, coffee table, and a few other leather reclining chairs. This is where the majority of our meeting and discussions took place.

Dustin quickly jumped right into things. He seemed to be very prepared and on top of things from the very beginning. Not once did I feel like he didn't know what the hell was going on. After all, he has been in this business for over 20 years and the company has been around for at least a decade. The building they are currently in, they have been in for 6 years now. He also gave me a few handouts from a conference call with private investors a year or so ago (these handouts detailed many of their goals and strategies that are still in place today) and a business card.


He started by giving me background information on his company. This included where the company started up until where they are today. They were a private company up until late '08-09 when they began getting everything ready to go public (1st round of PPM was in Dec. 09 - he said FINRA likes to see at least 100 shareholders and prefers that some are long term). Since they did not have the 100 shareholders, they instead bought a Delaware corporation by the name of Natell Corporation (see filings for more information on this). This corporation already had enough shareholders with many of them owning shares for over 10 years. This allowed them to go public. However, shares didn't start trading in open market until the middle of May (only 2 months ago) where it opened at .15. This is the main reason the share price fell so far. No one knew about this company and were way under the radar. There were originally only about 9M shares in the tradable float. They issued 16M UNRESTRICTED shares to their consultant in April for help in becoming a thriving public company. This probably explains who has been selling shares as of late. Once this consultant is done selling (which I personally believe he is very close based on recent volume), the float will be close to 25-26M TOTAL. This was CONFIRMED through Dustin himself. In other words, there are NO OTHER shares in the float out there after this! ALL 89M of DUSTIN'S shares are RESTRICTED for as long as he owns the company. He said he can only legally sell 1% of his shares every 90 days and at this time he does not plan on doing that. I will get more into share information later.

Going back to our conversation regarding the company's history, he told me that when the market was booming, Accu-Title had 38 offices and was bringing in around 5M in revs! Keep in mind, that the gross margins in this industry are tremendous (around 55-60%). When the market crumbled, Dustin was forced to downsize to 13 offices which enabled him to cut costs by over 70% which is the only reason he is still around today. These offices are strategically placed so that ALL Florida citizens are within a 30-45 minute from one of their offices (The only exception is the Miami-Dade area which he prefers to stay away from due to the high rate of fraud in that area). Most other companies fell through the cracks at this time. This will bode well for when the market does fully recover, the growth here will be exponential as Dustin is using this down time to acquire closers from other companies that have went under (but still have significant relationships and contacts for business). It doesn't cost him anything to acquire new closers because they work on 100% commission. The only expense to him is if they need to setup a new office, which lately he has instead placed these new agents in existing offices (even if they work from home or in another location). Even if he does establish a new office, he uses short term leases since he does not want to be tied into a long term lease should things not work out. He currently has 5 employees at the corporate office who do a majority of the admin work in supporting his closers throughout Florida (and soon to be throughout the nation). He did mention he will need to hire more admins as growth presents itself, but as of now his current staff is able to handle the workload.

Since it is getting late and I could go on and on about the various things we discussed, the rest of the meeting I will present in bullet points to keep from drawing this post out too much (please pardon if i jump around some, my notes are kinda messy and I am just trying to make sure all important points are covered).

-Dustin mentioned that to be honest, he was not ready nor expecting all of this to unfold so quickly and we early investors are lucky we "stumbled" upon this so soon. He would have much rather stayed under the radar for another 6-9 months because his main goal is to eventually bring in long term institutional/wholesale investors and mutual funds who will give him better access to capital allowing him to grow much quicker (yes, he has been in contact with several of these investors). However, he did say he welcomes anyone who is interested in his company at this stage in the game. In other words, we early investors beat these guys to the punch, consider yourselves lucky!

-As seen today in the most recent filing, the necessary paperwork was filed to be uplisted as "current" status on pink sheets. This should occur any day now. His short term goal is to further uplist to the OTCBB and eventually as business continues to grow be traded on the NASDAQ (this will take some time though, do not expect this to occur overnight). He will have to bring in auditors and this will cost $$$.

-Dustin has laid out 2 forms of growth for his company. One is horizontal growth (current stage we are in now) and the other is vertical growth. As mentioned earlier, horizontal growth entails expanding his base of closers throughout not only Florida but soon to be nationwide (branching outwards - hence horizontally). He is able to do this by acquiring closers from failed companies in this downturn. He says many of these small to mid-sized title companies closed not because their service was below par, but because they could not maintain the required capital thresholds that are legally required by law. This is where Accu-Title steps in and "saves them" by giving them the solid backing they need to keep the doors open. Once again, I will re-iterate that this costs the company very little as these new closers are just integrated into the system that is already in place. This is what is unique about this company's strategy and potential. Vertical growth will come in due time as the market recovers. This simply means that once he has his network of closers in place, once the market recovers and volume increases through each closer, the growth will then become vertical (hence, branch upwards). This is where exponential growth will take hold. Its quite a simple concept to grasp by looking it this way.


-Their relationship with Old Republic has been mentioned extensively on this and other boards and I can now elaborate on this relationship after getting more clarity from Dustin. Many of us thought Accu-Title and Old Republic, JUST NOW established a working relationship. In actuality, they have been partners for over 10 years now! Please do not underestimate the importance of this relationship with Old Republic. When the market was down and Accu-Title was forced to downsize, OLD REPUBLIC stepped in and financially backed this company (see financial statements and you will see this)! Dustin says Old Republic has several of other vendors and wouldn't do this for any vendor if they expected them to fold. Old Republic is the oldest, most well respected title companies out there. Basically, Accu-Title closers can underwrite on behalf of Old Republic! It is extremely hard relationship to establish as Old Republic has very high standards with the vendors they deal with. This gives Accu-Title massive national exposure. I think the mix-up here is that the company is JUST NOW ready to take advantage of this partnership to expand nationally (before they were only focused on Florida). This is where the hiring of a National Operations Manager comes into play. The name of the guy they brought on is Harold Harper who has a very successful track record in this business (Harold Harpers Linked In Profile). He is currently based out of the Tampa, FL (Waters) office. He used to own his own title company and sold it to investors for millions. Now hes on board with us! This is excellent news to have such a seasoned professional filling this role. His brother is Alvin Harper that used to play for the Dallas Cowboys.

-As part of this national expansion, Dustin soon anticipates bringing on a group of high level marketing executives to increase the company's brand throughout the country. Harold will be overseeing this task and it is understood that these marketing guys will be very aggressive in putting the company's name out there. This will only help increase exposure for the company and speed up the growth process.

-Dustin said (thanks to an awesome poster in here) he is meeting with the ValCom CEO on Thursday over lunch to discuss a possible partnership for the online auctions. He did say he is already in talks with another Online auction company as well!

-Without going into much detail, Dustin says he expects to hit previously released targets for revenue this year (their fiscal year ends at the end of this month). I believe this means they will at least report $1.4M in revs! He would not confirm or deny this. He says a ballpark figure will show 16% growth year over year with at least 20% per year expected in growth each year going forward. He told me to tell everyone to look at the statements closely and you will see some great things. Year over year growth in the bottom line was significant, top line revenues have increased MONTHLY (steady growth folks!). He expects the Year end financials to be out in the first week of August! (only 1.5-2 weeks from now)!! Keep your eyes peeled. We could see a very nice EPS number which would further send this stock soaring.

-Last but not least, many of you are concerned about dilution. Dustin wasn't able to go into too much detail about this because he doesn't want it to seem like he is giving insider information. However, he did mention that should he need to issue shares, they would be RESTRICTED! He says it is foolish to think that he will not ever issue any shares to raise capital and acquire other companies (I myself mentioned this several of times on this board too). This is why companies go public. He said if he wasn't expected to raise capital, then he would have just stayed private. Even the biggest corporations in the world issue shares to raise capital and they have still increased value for their shareholders. He says he could careless about the flippers out there who only want to make a quick buck and move on to the next. He is trying to build a solid company and that is his #1 priority. He says he also will not "whore out" his stock like most pinks out there and it doesn't make sense to do so because he owns 85% of the shares. He also has several of close friends and family members with heavy positions that are blue collar workers that he has to answer to on a regular basis. He says he would love to make them and all of the "TRUE" shareholders wealthy someday, but the only way to do this is through growth which requires capital. He did re-iterate his company currently is self-funded (brings in profit), but to take it to the next level, more capital will be required eventually. So to sum this up, he says there could be shares issued later down the road to support EXPANSION ONLY and ALL of these shares will be RESTRICTED!! . He says at some point he would like to be able to give out dividends.

-One other thing Dustin mentioned is he realizes if his company does what is to be expected, their company could be a high target for a buyout which is why his A/S is at 7B. He wants to make sure if this happens, he has full control over the situation (does not want hostile takeover situation to occur). He said he's worked too hard to just give away everything for dirt cheap.


I hope this post answers all the major questions and speculations that have been lingering out there regarding this company. I highly commend Dustin for being so open, honest and available to ALL interested investors. Not once did he try to belittle me or make it seem like he was disinterested. He says he gets tons of calls and emails daily and tries to answer all of them as quickly as possible. This is a breath of fresh air when compared to most other pinks out there who do not answer calls (if their phone even works) or emails, all the while diluting the heck out of their stock. He thanks everyone who is truly interested in helping build his company into a household name. He asks everyone to spread the word and if you ever need title work, you know who to call! He says anyone who sticks around should be greatly rewarded in the near and long term. I again want to thank Dustin for taking time out of his busy day to meet and address these questions not only for me, but for the others on this board who wanted more information. Good Luck Everyone!!

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52480470