TOP IDEAS: Three strategic acquisitions in two years and the financial gains are beginning to emerge as revenues top $20 million. Three analysts rate Avante Logixx Inc. (TSXV: XX) a buy.

Investorfile's share price accumulation target of $0.40 for Avante Logixx Inc. was reached on January 7, 2014. For the record, we do not revise share price targets for our Investorfile Top Ideas - Small Cap Value Stocks. We have positioned our blog to be one of the first providers of a pragmatic perspective of a small cap company stock's potential worth, where there may be uncovered value that has been largely overlooked by the investment community.

Much has changed since we first introduced Avante Logixx Inc. (TSXV: XX - $0.26) to Investorfile’s list of Top Ideas – Small Cap Value stocks (See: Avante Logixx: Post-turnaround stock provides value for growth investors.) No more so than the size of the Company, which today has annual revenue run rate expected to exceed $20 million.

Avante Logixx provides best-in-class and high-end residential and commercial security services, including system design and installation, rapid alarm response, alarm monitoring, video analytics, locksmith services and hardware and secure transport through the use of advanced technology and a focus on client service. Based in Toronto, the Company has grown to about 120 employees.

Avante Logixx was a turnaround project four years ago. At that time the new CEO and major shareholder (George Rossolatos) committed to renew the Company's focus in servicing its security market niche by steadily increasing its recurring revenue stream, generated from monthly security monitoring fees in order to grow profitably and build cash. The turnaround strategy was a big success.

The turnaround has transitioned to a growth story. The growth strategy: Continue to focus on the less competitive premium/high-end markets in both residential and commercial security; build a solid base of recurring revenues from monitoring fees and repeat business which generates strong cash-flow; and, leverage the internal growth with strategic acquisitions that retain management.

Avante Logixx is executing on its growth strategy. The Company has closed three acquisitions: First, INTO-Electronics, a Toronto based commercial and high-rise security integration, monitoring and electronic building management firm acquired in August 2014 and second, LVS Inc., a Greater Toronto Area high-end custom residential security and automation services integrator acquired in April 2015. Avante Logixx also acquired a 70% interest in City Wide Locksmiths Ltd. on April 1, 2016, which provides residential and commercial locksmith services and is a distributor of decorative door hardware operating in the Greater Toronto Area. In all three acquisitions, key personnel continue to be involved in the business and some have become significant shareholders in Avante.

After an integration period last year, the Company has begun to realize the synergies from its first two acquisitions through a simplified corporate structure, administrative cost reductions and realization of cross-selling opportunities. In the last reported quarter (Q3- FY 2016 December 31) the Company saw its quarterly revenues jump 32% to $3.9 million and adjusted EBITDA up 18% to $431,000. More financial improvements are anticipated for Q4. Avante Logixx’s acquisition of City Wide Locksmith is expected to be immediately accretive to earnings too and will be fully reflected in the Company’s first quarter results for fiscal 2017, the three-month period ending June 30,2016.

We firmly believe that Avante’s management team is executing and delivering on its M&A growth strategy. Even though the stock already exceeded our price accumulation target of $0.40 but has retreated since, we continue to reiterate the value buy of the Company’s shares by suggesting (again) that small cap investors should accumulate Avante’s stock up to a price of $0.40. This time around we consider the Company’s stock to be a "bigger and better” investment opportunity given the transformation of Avante Logixx over the past two years. That said, the upside potential of the stock price beyond $0.40 is now greater too.

Today the Investorfile blog is not the only opinion provider for Avante Logixx. Three analysts - Cormark Securities, Mackie Research and Paradigm Capital - now cover the stock, all with "buy” ratings and 12-month stock target prices ranging from $0.45 to $0.50. With this depth of research coverage the market should react positively to any future news and earnings reports.

The Company is net debt free and management/director ownership of Avante remains high at about 42% of the outstanding shares.

Avante Logixx has approximately 81.4 million shares outstanding.

Company website:www.avantelogixx.com

Author Ownership Disclosure: TSXV: XX - Yes