For retail investors, having those shares in tight hands could help fuel what is an already impressive June rally and add to the more than 11% month-to-date gain. And not only is the trend a friend, but the list of AMMO stock owners is also impressive.
Notably, several of the largest institutional holders are well-known
The interest and subsequent rise in value could also show that the window of opportunity at current price levels is starting to close. In fact, since our initial coverage of AMMO on
And rightfully so.
Video Link: https://www.youtube.com/embed/GPileCz5ZiI
Momentum On its Side
In fact,
A Q1 update in late May exposed that AMMO is indeed in hyper-growth mode. The company blew past its initial guidance by posting
Thus, the bullish sentiment from both retail and institutional investors appears to be well rooted, especially with AMMO well-positioned and capitalized to maximize its opportunities in the munitions sector.
Moreover, deals made and steps taken during the past few quarters should begin to help accelerate growth.
Massive Online And Physical Presence In 1600+ Locations
Keep in mind that while AMMO is getting included in the Russell 2000 and Microcap index, they look more like a large-cap from an operational perspective. The company already supplies over 750 million rounds per year, has a presence in more than 1600 retail locations, and works from a recently upgraded production facility that can triple current output. Better still, its upgraded manufacturing capabilities are supported by a robust multi-channel distribution network to handle the surging demand from various markets, including law enforcement, military, and sports markets.
And while reports show the combined market opportunity at roughly
In fact, AMMO is already benefiting from the surge, noting that its ammunition backlog increased by 125% in less than six months. To further maximize its outreach, AMMO opened a call center that ultimately connected them with more than 67,000 dealers, added over 1,000 new customers, and processed over
The best part is that AMMO can meet an enormous increase in demand from its enhanced 160,000 square foot production facility. That means that AMMO can do more than target demand; they can fill orders.
Remember, too, experience counts.
AMMO Is Growing With Intention
For new investors, it's important to realize that AMMO is no new kid on the block in the sector. In fact, since 1999, their unwavering commitment to excellence and their willingness to capitalize upon strategic expansion opportunities has helped them grow into one of the top five suppliers in the world.
Moreover, even during the unprecedented pandemic-related slowdown, AMMO proved it could grow despite logistical hurdles. During the past 18 months, AMMO expanded its ammunition portfolio, increased production capacity through facility upgrades, and closed its massive
In fact, with GunBroker.com revenues included, AMMO is expecting to generate roughly
Still, 2021 is shaping up to be a record year.
Bullish Momentum Fuels Back Half Of 2021
Perhaps the best news for shareholders is that AMMO's growth is expected to gain momentum. Beyond tangible assets and market-leading brands, they have a management team that performs at an extremely high level. Thus, while 2021 could post record revenues, don't expect growth to slow down next year.
In fact, a deal finalized last month could be an accelerator for near and long-term market expansion. In May, AMMO announced a seven-figure high-margin international ammunition transaction. That deal alone is expected to contribute substantial revenues, and it also creates an opportunity for seamless international business expansion, especially as the global markets ease COVID-related restrictions. Thus, AMMO's current estimate for
Hence, with AMMO firing on all cylinders, current prices, despite the June surge, may still materially undervalue its revenues and assets. Still, market disconnects create opportunities for investors. And AMMO's current share price, especially with its Russell inclusion imminent, may be presenting a massive one.
Disclaimers:
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
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