Lance justified his salary by putting up with all the grief from everyone, while turning a $4M company into a $60M company and paying for everything else including his salaries and every mistake and now some new opportunities, nearly all from this miracle he was responsible for creating.
I am guessing that the Streetlinks deal has been in the works for many months, maybe since last summer when insider buying ceased. It probably was going to be the funding vehicle for the Western Union Tax Service that even once had a job fair. I think the company decided that tax services are becoming more competitive with all the free online services and all. Although they bought into Community Income Tax to boost Advent’s customer base, the tax refund debit card business just isn’t big enough. Western Union couldn’t make it. Republic Bank couldn’t make it. I don’t see any departures yet and the company has close ties to many of these employees. I expect Advent will continue, probably with someone like Republic Bank which has vowed to stay in the tax business. As for Western Union, their logos were quietly removed from the mygetitcard website a few weeks ago.
On any list of big losers, don't forget Wavb who claimed that SL profits were a diversion, where they moved losses to other subsidiaries (which would have been a crime since they had outside partners for all subs at the time), and he called SL software nothing but vaporware. Also, add Carler to the mix. He disappeared last night after being reprimanded by another basher for not understanding the business of CorvisaCloud.
The last share price run-up into the 70’s was led by insider buying. Insider buying may continue to be halted until the company provides its plans for Advent and perhaps any hot news on CorvisaCloud. That is coming very soon, so expect a flurry of pent up buying activity from these insiders.
Lance Anderson and the Board of Directors paid $4.1M for most of Streetlinks and bought the remainder of their interest out of profits. So, they turned $4.1 into $52.8M, a deal with Corvisa and the possibility of an added bonus of $10.5M. Although at one time I hoped for a lot more, most would consider today's sale to be a miracle.
I wrote this about Lance a little over one year ago:
According to bashers, he’s overpaid and is looting the company, treating its assets as if they were his own piggy bank. I’ve met many employees of the various subsidiaries recently. Makes me wonder when EVERYONE who works for him volunteers their high praise for him (and for Steve Haslam, second in charge). Is it possible he is just a cautious CEO, quietly (without telling the competition what he is up to) building two, maybe even three, companies from scratch into “home runs.” Nearly everyone agrees he’s done that with Streetlinks. On deck is a very promising CorvisaCloud. And, we’re waiting for some hopeful news on Advent Financial. Just one or two winners will make shareholders a lot of money. NOVS or NFI could have stopped paying its bills to the banks and to the senior debt holders. They could have said good-bye to preferred AND common shareholders. And, Lance, I assume, could have taken his money, purchased Streetlinks himself and gotten the inevitable profits all for himself. Instead, I guess someone might say he bullied the board of directors into taking the deal on Streetlinks. For that, I will always be grateful
Last week, I predicted a bold move to strengthen the capital structure of NOVC. Note the Q3 call was labelled as a “Q3 investor call”. This is not described as a Q4 call or a Q1 call or even a year-end call. This investor call IMO clearly is to discuss news. If so, we should get that news between now and April 30.
This is an unusual call, if only in its timing, so I am optimistic that the news will be good, and it should be more dramatic than past news. There was no call when they announced the massive re-organization a few years ago; no call when they closed Mango; no call when they bought Streetlinks or Advent or Corvisa or CorvisaCloud; no news at all when they initially launched a tax service in conjunction with Western Union; no report at all when they bought an interest in Community Income Tax.
The last day of the tax season is tomorrow. After that, news relating to Advent can be released without concern for their existing customers. It sounds to me like the news, although it may include that, will be much larger. One possibility is the sale of an asset, such as a subsidiary, scheduled for last day of the month, perhaps an hour or two before the call?
There can only be a bold move of some kind in the next few weeks by the company. The company simply needs capital. They have some businesses that already have attracted outside interest. One of the largest appraisal firms in the country. A tax refund business that Western Union likes. An even more exciting cloud business. A thoughtful critic might say that the company will do something to hurt shareholders, but at 25 cents there isn’t much hurt left. Any news of a sale or partnership seems to be delayed until tax season ends and this makes me wonder if the big plan for a major new tax business is still in the works. Or will the bold move, surely coming in the next couple of weeks, be something entirely different?
Batman and Robin (Studio) today revised what Batman said back in December. Here is my post accurately quoting Batman at the time and it wasn't until other bashers cried foul that he hedged on his statement:
One of IV Board’s biggest bashers now says that “SL isn’t worth more than 150mm in my view”. If the sub were sold for that much, it would wipe out NOVC’s entire debt and leave the company with $80M or so in cash or nearly a dollar a share just in cash. Although some longs have estimated SL between $150-500M, this is a major concession from this poster.
The batman and studio versions today are the ones batman re-wrote when he was called. This is the quote that 25 agreed with back in December. Don't believe either one of them.
Last year, the proxies for the usual routine business for the annual meeting went out a little over a month before the meeting, on April 3 to be exact. At that time the company also discussed the earlier closing of Mango Moving, the continued strength of Streetlinks, little insight into Advent except for optimism for the deal with Western Union and the fact that CorvisaCloud had the potential to be our “most exciting” acquisition.The stakes are higher this year. Streetlinks has stalled as the mortgage market has crashed. CorvisaCloud continues to offer potential, but it may need millions more to get profitable. Advent will either be closed, sold or be completely restructured. We should finally hear if a major tax service planned to revive Advent is still a possibility. Despite the decreased company cash, everything seems to be business as usual. Sounds like a plan is in place. The possibility of selling one or more subsidiaries in line with language in the latest 10-K, could be in any plan. This year’s annual meeting mailings should be more than routine.
Ted, you scored a "bingo." A current VP of Sales at Streetlinks used to be a VP of Sales at First Choice. Even better: Johm Alexander is a former business development director for First Choice Loan Services. He is presently the President and CEO of Affinity Partnerships, the company behind the Costco program, which he designed in December 2010. Guess where John worked until November 2010? He was a director of a small software firm called Corvisa. His bio says: “The result was Corvisa is now part of StreetLinks and I will remain as a reseller and supporter of the both organizations.”
A small but perhaps telling clue. Some point to the CorvisaCloud "losses", which are merely start-up investments for a platform not even launched until Q4. The larger issue, of course, is how the customer base responds to these investments and what the company plan is for staying power during the investment phase. I think the hints in their latest 10K are that they will del something.
Thanks for this info. Did you see VirPack's list of lenders they work with? Pretty impressive. It looks like a great way to get on the inside track.
No, Matt Lautz had zero interest and sold zero interests and he is committed to the success of CorvisaCloud. Any other suggestion is simply something made up by someone trying to pimp a negative point of view.The minority interest was another investor, totally unrelated to prior owners, who also saw an opportunity. Obviously, it paid off well since he invested $150K and got back $600K. That is because he and NOVC realize the huge potential with CorvisaCloud. There will be no personnel changes, since nothing has changed, except now NOVC is 100% committed instead of 85% committed.
There may be a great buying opportunity this week, but insiders are still prevented from buying. The 10-K makes it pretty clear, as others have posted, that the insiders know more than the company has told us, as they have for months. The new 10-K discussion of selling one or more companies and the need for more cash to fund CorvisaCloud and a new tax service provide some insight. Until announcements are made, though, insiders are sidelined. Insiders who bought heavily at 50 cents are probably anxious to buy more for the low prices of late, but until they tell us what they know, they are not free to buy. They aren’t selling either.
“When the news is out at Corvisa/CorvisaCloud that their leader sold out his equity interest, how ill (sic) that go over?”
Studio/Bankbuyer is referring to Matt Lautz, the president of CorvisaCloud.
Lautz retained ZERO interest in CorvisaCloud and was NOT one of the minority investors who sold their shares. In fact, Lautz continues to have shares in NOVC and has NOT sold any of them. The minority interests who sold out simply did not have deep enough pockets to make the necessary investment in this expensive world class operation and they received a handsome QUADRUPLE return on their investment in a year's time!
From Basher Batman: “what exactly does Lance do other then sell NOVC his #$%$ investments that he can't get out of?”
First off Lance was responsible for saving the company when all other subprime companies went out of business. Then, based on his savvy, NOVC bought a small town appraisal company and turned it into the largest non -bank controlled AMC in the nation. That was out of 300 competitors. He saw the potential and could have invested in it himself, but instead talked the NOVC board into buying it. This investment alone, which he instead shared with shareholders, will undoubtedly provide a nice return to anyone who acquired common, and held on, after the subprime days.
Batman’s stupid comment is based solely on the Mango failure. Lance invested some money initially, but the company has restrictions on office holders having such outside investments. Lance, almost immediately after he made his investment, discussed the opportunity with the Board, BEFORE ANY ACTION WAS TAKEN TO DEVELOP THIS IDEA OR OTHERWISE SEE IF THE INVESTMENT WAS A WISE ONE, and the Board and a separate outside investment group opted to invest and take over Lance’s share. Again, before anyone had an inkling it might be a bad investment, and, in fact, when everyone thought it a good idea.