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Interesting to see that Crux has been adding.
If there was to be a placing, you wouldn't imagine an insti would be adding at the current market price.
Yes, trading below cash and well below NAV at the moment. The market appears to be waiting for clarity as to what is going to happen next.
The short term risk here is that there is dilution to ensure a successful bid, but if you believe in Vin Murria's capability to drive shareholder value over the long term then that shouldn't be a big issue.
Thanks x54v. Taken an opening position here. The cash now stands at around 79p per share, and you can buy at 74.8. In addition there is the 9% holding in SAA. You can by a pound for 75p, so it would be rude not to. There is no actual business here yet, as it was created as a takeover vehicle. But the cash burn is minimal at £0.2m a year, and if the SAA deal goes through, there will be a valuable business here, even if there is mass dilution. I hold SAA too, but taking a holding here seems prudent to me. If the takeover does not go through, which I think it probably will, there should be another target on the horizon.
Opportunity at ADVT?
Vin Murria has invested £17.5 million of her own cash here at 100p yet the shares are currently quoted at just 79.5p mid.
ADVT has 78.9p per share in cash and a holding in SAA worth a further 15.2p at the market price.
So you can currently buy 94.1p of value for 79p (a steep discount to the 100p Vin Murria paid).
Vin Murria has had great success previously, 10-bagging both Computer Software Group and Advanced Computer Software. Her plan is to do the same again at ADVT using a buy and build approach. And clearly she is confident she can do it and prepared to put her money where her mouth is with £17.5 million of her own cash on the line.
How many times do you see a director purchase quite so large? Very seldom. £175k might be seen as a decent sized director buy. £17.5 million is equivalent to 100 such purchases.
The share price weakness at the moment is due to her proposed merger with SAA and the SAA board not being keen. SAA itself is trading well.
However the proposed merger plays out, surely there is a good opportunity around the current levels at ADVT with as much cash in the bank as the market quote and all the potential upside that alignment with Vin Murria can bring.
https://masterinvestor.co.uk/equities/small-cap-comment-on-saa-snws-and-acrl/
Thanks slowlyslowly. I have also spotted, as many others have probably done much earlier, that Vin Murria bought £17.5m worth of ADVT shares on 23 March last year shortly after being made a NED and Deputy Chair of the Board of MC Saatchi on 3 Mar 21. And now ADVT/Saatchi has a substantial link up. I suggest these are the visible signs of some highly ambitious plans.
"where has the cash to buy that stake come from?"
As of the last results, ADVT has cash of just over £129m.
So why is the purchase of nearly 10% of M&C Saatchi a good investment for ADVT? And where has the cash to buy that stake come from?
The most recent results statement certainly sounded promising with regards a potential deal:
“as we head towards 2022, we have a robust and growing pipeline of what we believe are businesses that closely match our target characteristics.”
Interesting to note that the CRUX UK Special Situations Fund has recently been buying at the current level. The fund manager Richard Penny has done well with his fund ranked 4th out of 239 over 12 months. He bought into KIST at IPO at 100p (now 412p) and reckons that ADVT presents a similar opportunity to invest in proven management with a track record of success and skin in the game.
Vin Murria has invested £17.5 million of her own cash at 100p, so she is heavily aligned with shareholders and will be working hard to get the right deal. The downside is limited since the company is awash with cash (97p) at the last results. The potential upside on the other hand is significant with VM having previously driven two 10-baggers in the quoted software space.
I hope I am wrong, but I do have a feeling that this is rather like, "Waiting for Godot"! I just hope that he does arrive, and that he is bearing ripe fruits for us tramps! GLA
Up this morning with the offer price up to 127p. Hopefully Vin has been busy......
Added 10,000 at 120.
Any reason for the rise today?
The main shareholders list has recently been updated on the company website to reflect the position as at 31st Aug (was 28th May previously).
Overall holdings have gone up slightly to 82.7% from 82.1%, with the main instis remaining keen holders. Gresham House has added a further 800,000 shares.
Not a lot of free float around with the instis such large holders, so there could be a mad scramble for stock on any significant acquisition.
Backing proven management has worked wonders with KIST (Andrew Austin) and SFOR (Martin Sorrell), so here's hoping the same happens with ADVT and Vin Murria.
And a further 22,500 @ 116.2 today.
Added 25,000 at 114.35
Perky today. Nothing for weeks, then buyers all over it. Leak? or just something tipped in an article or something? Hopefully someone knows..
Certainly true here with Vin Murria having over £20 million of her own cash invested in the company...
---
"There are few better guarantees that a fund manager or director is acting in your best interests than by having a significant personal investment"
https://masterinvestor.co.uk/funds-and-investment-trusts/the-fund-managers-and-boards-with-the-most-skin-in-the-game/
Thanks for sharing just..
I agree with Miti tho that looks like a small U.K. company, the kinda acquisition swc are looking for
Advt are looking for a bigger company more than likely based overseas in u.s.a
Celaton looks way too small for ADVT but probably the right size for SWC . Company accounts only appear to show revenue of 4mill ?
https://enterprisetalk.com/news/software-company-secures-backing-from-renowned-tech-entrepreneur-vin-murria/
The main investor going in with Vin on this Celaton deal is BGF. BGF are also a 15% holder is ADVT...so it could be a precursor to a deal to clean up the register before the RTO. Would technically mean no need to announce anything just yet.
If true, then I can see the price moving up quickly to 150p+ next week as the market wakes up.
Nice entry opportunity here as price has drifted back to prior support.
Vin Murria has around £20 million of her own cash invested bought in the placing at 100p so clearly believes in the opportunity. Her significant skin in the game is likely to be a powerful motivator.
There is strong institutional buy in. And no wonder with Vin's amazing track record. This makes for a tight register with 83% of the stock in the hands of sticky holders. So the price can move very quickly when there is demand.
The shares are currently trading at only at a slight premium to cash. And have the safety net of a huge cash balance waiting to be deployed.
As for the potential upside, well worth researching Vin's prior history.
"Both CSG and Advanced had given all the shareholders at least a 10x" - 8:04
https://audioboom.com/posts/7859138-vin-murria-of-advancedadvt-plus-and-christian-taylor-wilkinson-of-altona-rare-earths
If she's done it before, she can do it again...
Bought some ADVT today on weakness, HL now dealing...got some at a fair price imho, just a waiting game...GLA