ADDvantage Technologies Group, Inc. (NASDAQ:AEY)

CAPS Rating: No stars

The Company, through its subsidiaries, distributes and services a line of electronics and hardware for the cable television industry.

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Member Avatar TSIF (99.96) Submitted: 4/2/2014 3:33:16 PM : Underperform Start Price: $3.49 AEY Score: +2.08

ADDvantage Technologies Group, Inc dropped 17% on Feb 17th when it's quarterly report came out...it has slowly gained it all back plus some. LOW FLOAT (sub 5M), LOW volume equities, can be difficult to pin down. When I check the stats and see sub 5M shares in the float, I should generally stay away and go elsewhere...but I'm boggled and curious enough that I poke around, get conviction that the investors are nuts, and give it a down thumb.

I had planned to wait until near earnings in May as this could continue to float higher, but decided to let it kick in.

ADDvantage Tech may be confusion to some as it's well below book value, (0.83) even at $3.40 each, and P/S is very low at 1.1. That ADDvantage's profit dropped 75% and that they warned, apparently may not compute for some folks.

"Sales of new and refurbished equipment were lower due to the equipment sales last year resulting from Hurricane Sandy and the continued decrease in plant expansions and bandwidth upgrades in the cable television industry"

Essentially they are saying that previous results were above average and now are becoming average..not that a one time issue dropped sales, so buy it at a bargain and watch it grow.

Not only that they are dicounting to get what they can:

"Net income for the three month period ended December 31, 2013 was $0.2 million, or $0.02 per diluted share, compared with $0.8 million, or $0.08 per diluted share, for the same period of 2012. This decrease is primarily as a result of lower total revenue and sales last year of certain refurbished equipment purchased at significant discounts."

As a result, they are revamping their sales team, which typically adds cost.
They bought NAVE for $10M in early March, but it appears to be more of the same, used equipment on a decline.

I see no reason for a share price increase, other than that 20-30,000 shares are peanuts and there are some micro-cap mutual funds and some index funds that might be adding to balance.

Overall, not much of a CAPS call, and small float, small volume will probably bite me...

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Member Avatar reddingrunner (97.48) Submitted: 3/18/2014 3:10:51 PM : Outperform Start Price: $3.14 AEY Score: +8.37

piotroski

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Member Avatar GABO7314 (< 20) Submitted: 3/2/2014 6:25:10 AM : Outperform Start Price: $2.93 AEY Score: +14.44

50 day moving average is above 200 day and MACD histogram has a bullish outlook.

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