Savvy Trades and Investments

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Speaking of 5G, anyone still own/follow AEY? Dramatic transformation underway there in the past few weeks, yet still off the radar. Company divesting their cable segment to focus on faster growing telecommunications and 5G.

Selling their cable business and the building for about $15M, which is the current market cap. So probably not too much downside, with a chance to shoot up to the $2's or $3's if they're successful. I like the gamble and bought a few shares around $1.40.

Yes they're likely selling the cable business in a sweetheart deal. But it also looks like they got a heck of a deal on the 2 new acquisitions. Bought them both for $1.7M. And on the CC, they said these companies have annual revenues of $20M. Maybe too good to be true?

I'm still digging so wasn't sure if anyone else was looking at this. If nothing else, AEY could see a spike later this year on 5G hype.

Here's some commentary from the newish CEO in the earnings report a couple weeks ago:

“As part of our strategy to expand into the broader telecommunications market, we recently announced our decision to enter the wireless infrastructure services market. This comes at a time when all major U.S. carriers are planning to rollout 5G in the wireless space over the next ten years and there is an opportunity for the Company to participate in this fast-growing market. To accelerate this strategy, yesterday we announced that we entered into an asset purchase agreement to acquire the assets of Fulton Technologies, Inc. and Mill City Communications, Inc. for a purchase price of $1.7 million. These two wireless infrastructure services companies have strong reputations in the wireless services industry and maintain solid contractual relationships with the four major U.S. wireless carriers and national integrators and original equipment manufacturers that support these wireless carriers. We anticipate that the purchase price plus integration costs would be similar to the costs we would have incurred to launch this services platform from scratch, while providing the additional benefit of an experienced operational team and a pre-existing revenue stream from the major customers in the industry. Once we finalize the acquisition and integrate these two companies into our business, it should increase our total addressable market significantly, diversify our revenue streams, and drive growth.

“Despite the challenging year in 2018, we believe that we have made, and are continuing to make, the necessary changes to position our company for long term success in 2019 and beyond. We believe there are many opportunities in the Telco market and look forward to improving our existing Telco businesses over the next several months, as well as developing this wireless infrastructure business offering in order to drive both topline and bottom line growth and build value for our shareholders,” concluded Mr. Hart.


And the PRs in recent weeks:

https://finance.yahoo.com/news/addvantage-technologies-announces-financial-results-133000721.html

https://finance.yahoo.com/news/addvantage-technologies-divest-cable-tv-211000284.html

https://finance.yahoo.com/news/addvantage-technologies-acquire-two-turn-213000830.html

https://finance.yahoo.com/news/addvantage-technologies-expands-telco-segment-133000695.html