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Good point, also, compare:
Aurus Corp - AURC - 330 million o/s - pink sheet stock, no filings, no confirmable revenue, hit .19 earlier this year, still trading in the multi pennies.
Dealer Advance Inc, - DLAV - 100 million o/s - OTCBB stock, FULLY REPORTING 10Q current - Trading range last 3 months = .0006 - .007 PPS
DLAV is a no brainer imo. Should be an interesting week. GLTA.
Nice DD transam73. Thanks for taking the time to email and chat with dealers and then posting your findings, it is much appreciated. GLTA.
Yes, you are right. Like I told everyone before I took the mod position, that I'm new to being a moderator, so I'm learning the ropes. Of course, everyone's view is welcome. I just ask that people keep it clean and civil. Please be gentle with me as mod, learning as I go. Thanks!
Also, one thing from the 10Q which I mentioned yesterday that I really like is the $20mil loss carryforward from 2002 to current which will offset taxes on revenues moving forward.
When I've spoken to other companies in the past, this is of paramount importance to them. This type of loss carryforward can dramatically increase the bottom line (profit) for a company when they move into serious revenue generation. GLTA.
That would be nice. Teens, .50s, dollars, of course that would be terrific. Anyway, let's see what this week holds. It's fun to speculate a bit. Ok, I had my fun for the day :) GLTA.
We shall see. I believe all the facts are pretty compelling. I'm very interested to see what they have forthcoming this week. I thought last week's PR was quite amazing, they've really turned the company around and are moving forward at a rapid pace, booking sales and gaining market traction. I'm hoping to see pennies this week as well. Let's see how this unfolds. GLTA.
The company has been very forthcoming with the share structure, so don't know what your issue is. They have had minimal dilution, especially during a year when they were developing the software product and ramping up marketing and sales. They've shown very careful restraint and only diluted very minimally and used that money very wisely.
If they were going to dilute big time, they would've done it a long time ago when they needed the funds. Now that they have exponentially growing sales and getting major market traction, there's no need to. Management are also shareholders as well and want to protect their shareholder value as well.
If you have questions, you should call the company. It may take a few days, but you will be able to chat to someone that can fill you in on o/s.
Don't think the T/A is gagged. I've called different T/A's before for different companies and it just depends on who you speak to. Some will answer that they do not divulge that information and if you call the T/A again and speak to someone else they will tell you. Just depends on who get at that specific T/A. Anyway, that has been my experience over the last couple of years. GLTA.
Yes, but this is nothing like a pinky whatsoever. It is a fully reporting otcbb, great proprietary software products, market penetration, exponentially growing sales, strong management that is concerned with shareholder value and only 100 million o/s. Just my opinion, but I believe we'll see pennies shortly. GLTA.
Well, it sounds like they are growing pretty quickly and actually someone from a Car Dealer posted this info:
Product confirmation from a ihub poster who works for a large dealership!
Posted by: jvance24
In reply to: None Date:11/13/2007 12:27:05 PM
Post #of 1130666
DLAV great product guys really. I am a sales manager for a big auto franchise called Jeff Wyler automotive in Cincy and Kentucky and Indiana. We also own the Jack Sprague Toyota CRaftsman truck. We just started this software in some of the showrooms around 2 mths ago to test it. We are now putting it into every showroom. This product is great. In order fo dealers to remain competive in this tough market everyone that wants to be a player will be forced to get this. Our customer retention has went up over 40%. I did not even know this was on the open market until today.
Agreed. It'll be interesting to see what this week holds as well as the following weeks. I think we'll be seeing a lot more announcements and a much higher stock price. Pennies this week hopefully. GLTA.
Its certainly possibly to get to multi pennies. Just depends on the PR releases, etc. I myself am looking for multipennies.
From the PR this week:
Our goal is being realized and that is to quickly turn the company around and create shareholder value. The company expects to generate $1.3 million in revenue from the conversion of existing dealerships by the end of the year and an additional $5-$7 million for newly added dealerships by April 2008.”
They are projecting $5-7 million in the first quarter. So, $10 mil for '08 may be conservative. Thanks.
Hi Gail, probably the best thing to do first is read the ibox and then go through the posts. There's a lot of good up to date information there. Let me know if you have any questions. GLTA.
Market cap is based on number of shares o/s x current share price. So, as a company books revenue and grows the company, the stock price usually follows upward. As the stock price rises, the market cap rises along with it. Hope that's helpful.
And $1.3 million projected by end of next month. Additional $5-7 million (Jan-Mar 08) and planned to be in the black in 08 as well (all per latest PR).
Just as a quick example: Aurc is a pink sheet stock with no filings, no revenue confirmed, 330 million o/s, 200 million in the float and they hit .19 earlier this year. They are still in the multi penny range.
DLAV is a fully reporting otcbb, 100 mil o/s, new proprietary software product that's quickly gaining market traction and exponentially growing sales, great management team, more products and deals on the way. Grossly undervalued imo.
Exactly, and the point is they're being very careful about diluting and when they do, they're using the money very wisely. They went from a dormancy period developing the web-based software product, to going to market, to gaining market share, to exponentially growing sales, to developing the wireless handheld product. It sounds like they are signing deals, creating opportunities and we're going to continue to hear about their progress beginning this week.
Yes, at this juncture, every company has to dilute to ramp up to full speed, but it sounds like they are over that hill now and running pretty fast. Any small dilution will be wisely spent based on the history they have shown us. JMHO. GLTA.
You make a great point fringe. I was saying the same thing yesterday. I believe its a non-issue, especially at this point where they've turned the company around and are now growing sales exponentially and deepening their traction in the marketplace with their web-based software product (WebDA).
Those convertible debts have been in the previous 3 or 4 10Qs and they have a 2009 expiry. They plan to be in the black next year according to their latest PR, so I imagine these debts will be paid off next year.
Also, the fact that there's only 100 million shares is a testament to this company that its showing restraint in terms of issuing shares, and the shares they have issued, they've used extremely wisely to build the company, develop WebDA, build sales and gain traction in the marketplace. They are also debuting their new wireless handheld product, Nokia770, in February at NADA. So, they continue to add products and gain marketshare. Company becoming stronger everyday and very solid management. JMHO. GLTA.
I would imagine that they have some sort of multi-tiered charging structure. Good point.
Just depends on how my dealers the client customer has and how many years the contract is for and how many client customers they sign up. See my previous posts below. GLTA.
Thanks for that info. It's really helpful. Definitely a good group of people here with all different backgrounds supplying good information. Very healthy indeed. Have a good weekend all. GLTA.
I see your point. I guess in some industries you 'have' to be certified and in others its "helpful" to be certified. At least GM dealers for example will know that GM themselves have tested the product etc. But you're right, I don't really know what the dealership protocol is. Thanks.
As I said this has been resident in filings for, I believe, two years, and they did not convert. So, the fact that its only 100 million outstanding as of today is a testament to management imo to protect shareholder value and to use what dilution they have done very wisely. I believe this is a solid investment.
I believe the fact that they are now making major sales and they are growing exponentially will make this a moot point. If they didn't have this software product and didn't have such great market penetration and growing sales, then there would be concern on my part, but I think they're past that now and moving forward in a strong manner. Thanks.
You are absolutely correct. But to be able to sell to a GM Dealer for example, a vendor probably has to be GM certified. So, it doesn't guarantee that the dealership will buy your product, but if you are GM certified, they are allowed to if they want to. That's how it works in most industries and with Government contracts for example. Thanks.
Exactly, that's the risk reward. But they definitely seem to have turned the corner and have a great software product and have growing revenues. Of course, if all the convertible debt was already sorted, we'd be in the multi dollar range as opposed to the sub penny range. I think the risk is drastically reducing as each day passes and the rewards are becoming greater. JMHO. GLTA.
Yes, I said previously they have to state in the 10Q that if they default on the convertible they have to state what it would be converted to.
However, based on their current and growing sales and the fact that the plan to be profitable next year (based on the most recent PR), they will probably be paying these convertible debts off early, so conversion of this debt to shares is highly doubtful. These levels have been stated in the previous 10Qs as well. That's how convertibles work. I'm sure you know that.
I'm I the only one that read the previous 10Qs? LOL. GLTA.
From the 10Q:
Our revenues are now generated from a one-time up-front payment and monthly recurring fees covering software licenses. Our license agreements are provided in twelve, twenty-four and thirty-six month terms. Typically, a $2,500 down payment, booked upon agreement of the contract, and a monthly fee of $1,500 over a twelve month term (these are approximate amounts, since exact amounts are negotiated between the Company and the customer) is booked monthly as revenue at an average annual fee of $20,500, inclusive of the down payment.
The Company currently has approximately 20 user contracts utilizing the Company's previous product (DealerAdvance™) at dealerships throughout the United States. Management believes that the majority of those contracts, of which all are to expire in the next 12 months, will be resigned to the new WebDA™ contracts at the above-mentioned rates however it cannot provide any guarantee regarding these renewals.
Additionally, many of the Company's client customer base are part of dealer groups comprised of three or more dealerships. Up until now the Company has not been successful in leveraging its relationships with these dealers enabling the Company to place the DealerAdvance™ product into those additional group stores. Management now believes that because of the its new web based product and its newly developed client relationships, there is an opportunity to add an additional 20 to 50 client contracts over the next 12 to 18 months through these groups.
Representing 43,000 separate franchises?? Oh man, just speculating for fun, but imagine them just getting a large portion of that market signed up for WebDA for 3 year contracts.
$36,000 revenue for a 3 year contract x ??? = ???
Ok, that's my little bit of fun speculation :) GLTA.
That's their plan. Their debuting their Nokia770 handheld at NADA in February. They seem to be very aggressive at developing and marketing their web based products very well. According to their latest PR, their sales seem to be ramping up very quickly. Let's see what next week holds. GLTA.
Well, let's see what next week holds. The 10Q held no surprises for me. I'm delighted to see the o/s where it is. It looks like they've been very prudent with dilution and not going overboard and using the funds very wisely. Hopefully, beginning next week, we'll get a clearer picture of the magnitude of where they are going with this. By the way, you're very welcome. I'm hoping to make money on this as well. GLTA.
I spoke with the CEO, Steven Humphries yesterday. If you look in the ibox, the contents of my conversation with him is there.
By the way, none of this is pumping, just an explanation of my understanding of my conversation with the CEO yesterday. GLTA.
Also, they are in the final stages of being a GM certified vendor. So, that could potentially immediately put them in many (if not all) of the network of GM Dealers nationwide.
They are also pursuing being vendor certified for all the major car manufacturers.
I believe this is a very solid business model. Not just upfront money, but continuing income for 1-3 years for each contract.
Yes, actually, I think its stated in the 10Q the pay structure. It's a one time setup fee and then a monthly fee after that for a 12, 24 and 36 month contract. So, there is money upfront for each contract (the setup fee and the first month) and then its continuing income on a monthly basis for each dealer.
So, for example, as the CEO put it to me, if they sign 300 dealers for 3 year contracts, thats $20 million in revenue over a three year period for only 300 dealers.
Also, if you can see in the 10Q that most dealers have at least 3 showrooms, so if they even approach 100 dealers, they expect to glean all 3 or more showrooms as clients. Imagine how many dealers there are in the US. Thousands. So, the good thing is that there is some up front money but there is also a continuing flow of income for 12, 24 and 36 months dependent on the contract that is signed for each dealer.
Hope that's helpful.
I think that's what they've been banking on too and it looks like its paying off. Let's see what else they have to tell us next week :)
Well, based on recent and growing sales, it looks like they are on target to not only pay off that debt but to be profitable. They also have the wireless handheld Nokia770 launching in February. Let's see what news they have for us next week. So far looking very good imo. By the way, pretty much all this info was in the previous 10Qs, the only difference now is that they have an amazing software product that they've already taken to market and already having sales that are growing exponentially. I'm very pleased with their progress. I think there's much more to come. JMHO. GLTA.
Well, for me, its pretty much status quo with the other 10Qs that I read earlier this week, so no issue there.
My biggest concern was the o/s. The fact that its currently 100 million is stellar. I was concerned of huge dilution over the last few months, especially based on the volume. So, I agree with fringe, I feel reassured that there is restraint in terms of issuing shares and they seem to be doing their best to grow the business quickly and exponentially and protecting shareholder value. GLTA.
Yes, but those convertibles have dates. Check out the notes at the bottom. There are due dates for the loan and they plan on being in the black next year, so I believe they will be paying off those debts.
At 100 million o/s its looking pretty solid at this point.
According to their latest PR, they plan to be in the black next year so I would imagine all the converible debt will disappear as they continue to receive revenues moving forward. They took a chance and it looks like its paying off imo.
For an o/s at 100 million as of this month, I'm honestly delighted. I really thought we were going to see something completely way above that. They seem to be on top of taking care of shareholder value. You have to gamble in order to play the game, and it looks like their investments are beginning to pay off big time.
This is all my opinion. Please let me know if you have any questions or if I've missed something. Thanks.
Any thoughts, questions, anything I missed?
Based on their most recent PR, they plan to be in the black next year, so I would imagine they plan on paying off the convertible debt early. So, any potential dilution from that would not occur, imo.