A stock that we haven’t covered in quite a long time, ADVANTIS CORP/SH SH (OTCMKTS:ADVT), popped higher on Tuesday. There was no obvious news catalyst driving the action, so we wanted to put it on your radar. There is the possibility that there are forces at work here that transcend fundamentals and could be worrisome for new money involvement, so caveat emptor. However, the last catalyst we see was when the company’s CEO, Darren Cherry, stated that he foresees 20% quarter over quarter revenue growth for the foreseeable future. According to the release, he also announced that a new development will result in a much larger revenue jump in the current quarter.
“Our quality work, excellent service, and budding relationships are paving our way,” Cherry explained. “One of our most loyal clients just quadrupled their ongoing orders.” Cherry says that the large order increases are a direct result of increased market demand. “We are seeing the marketplace respond,” Cherry continued.
ADVANTIS CORP/SH SH (OTCMKTS:ADVT) bills itself as a company that develops and markets products focusing on medical cannabis, research, and pharmaceutical sectors. The company offers pain management and healthcare solutions.
Advantis Corp. was formerly known as Ramoil Management, Ltd. and changed its name to Advantis Corp. in December 2015. Advantis Corp. is based in Santa Ana, California.
According to company materials, “Advantis Corporation (ADVT) focuses on the development of innovative products that supply the medical, research, and pharmaceutical industries. The company additionally establishes partnerships with businesses that develop and sell proprietary pain management, and consumer products and services.”
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As noted above, ADVT just popped higher on no obvious catalyst on Tuesday about a week after a note from the company that it was upping its rev guidance.
Recent action has seen 44% added to share values of the company over the past week of action, a bounce that has taken root amid largely bearish action over the larger time frame. In addition, the name has benefitted from a jump in recent trading volume to the tune of approaching 280% above its longer-run average levels.
“When the highest quality products go into an Amster-Can, people associate our packaging and contents with a brand they can trust. This particular client went from a quarter of a pallet to a full pallet and expects that to be the regular order going forward. Our clients understand the value of having a hermetically sealed package that can be branded, labeled, and stored the way they want it.” Cherry says that this was an unexpected order that Advantis is immediately fulfilling, so he felt it necessary to update shareholders. “This is revenue we expect for the current quarter, so I thought it was important, especially since I announced a lower revenue forecast last week. With these growing relationships, comes the ability to expand more rapidly.” Cherry added that he expects more clients in the coming months to significantly increase their orders. “We had a surge of new clients not too long ago that wanted to try us out. I think this is the first of many unexpected orders to come in as our clients see success and our brand and marketing reach expands with current and new partners.
Currently trading at a market capitalization of $37.77M, ADVT has a store ($313K) of cash on the books, which must be weighed relative to about $884K in total current liabilities. One should also note that debt has been growing over recent quarters. ADVT is pulling in trailing 12-month revenues of $541K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 64.2%. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $ADVT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $ADVT, either long or short, and we have not been compensated for this article.