Indeed,
In fact, even without the late
Revenues Surge, Acquisition Will Add Even More
Although the GunBroker.com acquisition provided an exclamation point to a tremendous quarter of business, AMMO was already on a roll. In fact, AMMO's impressive performance last quarter was best demonstrated by two things. First, the company blew its own estimates out of the water by posting
Investors are taking notice. In fact, its confluence of news sent shares higher by more than 8% in May, despite the weakness in the broader micro-cap market. Better still, the company has held its gains through the month-long bearish conditions in the NASDAQ markets - while the index lost 3%, AMMO is building to its 97% YTD gains.
And the expectations are for AMMO, with GunBroker.com, to capitalize on new and massive opportunities in the munitions sector. Thus, its 97% YTD gain could be the starting point for the future.
Accretive Development Strategies Bring Great Returns
Keep in mind, too, that although AMMO stock trades as a micro-cap, its reputation as a premier American ammunition and components manufacturer is never questioned. In fact, since 1999, the company's unwavering commitment to excellence and its eagerness to capitalize upon business expansion opportunities has helped them emerge as a leader in the industry.
Moreover, despite an unprecedented 18-month pandemic-related slowdown, AMMO expanded its ammunition portfolio, increased production capacity through facility upgrades, and took advantage of strategic acquisition opportunities when presented. Heading into the back half of 2021, those moves position AMMO exceptionally well to capitalize on the ammunition industry's surge in product demand. In fact, beyond current orders, AMMO is also serving a backlog of orders that will combine to fuel revenue growth this quarter. By the way, those new to AMMO should know that they generate impressive revenues already.
Even before the GunBroker.com acquisition, AMMO expected to generate roughly
That's because AMMO now owns the rights to the world's largest online auction marketplace dedicated to firearms, hunting, and related products. And that asset immediately adds enormous value to the company's portfolio and creates opportunities to target new and diversified opportunities. Better still, as a result of the acquisition, AMMO gained access to a platform that has 60 million registered users. And marketing directly to that group could drive revenues exponentially higher.
Better still, AMMO will be leveraging an online presence that is substantially improved.
Immediate Physical And Online Presence In 1600+ Locations
Although AMMO already supplies over 750 million rounds per year, its acquisition, enhanced online presence, and facility upgrades set the stage for considerable near-term growth. In fact, with upgraded manufacturing capabilities and a robust multi-channel distribution network, AMMO is better prepared than ever to handle the intense demand from various industries, including law enforcement, military, and sports markets.
As it stands, AMMO is targeting combined global market opportunities exceeding
In fact, analysts expect an even more significant surge in buying as shortages in weapons and ammunition feed the demand caused by an uncertain political environment regarding potential legislative actions. The pre-Biden buying spree may be a precursor of more to come, especially with the media pushing narratives that could sway public opinion regarding gun ownership. For AMMO, though, wherever the demand originates, it's great for business. And demand is quite strong already.
AMMO stated that its ammunition backlog increased by 125% in less than six months, leading them to open a call center that connected them with more than 67,000 dealers, added over 1,000 new customers, and processed over
Thus, it's comforting for investors to know that AMMO can meet surging demand from its combined manufacturing space of more than 160,000 square feet. In fact, the company expects that its facility improvements can triple production output. Even better, from an operations perspective, those improvements are expected to generate savings of up to
Keep in mind, those savings come on top of already strong margins. There's more to like.
A Bullish Back Half Of 2021
The excellent news for shareholders is that the growth at AMMO comes from tangible assets and organic growth. And more importantly, their contribution to a record-setting performance is not expected to slow down anytime soon.
In fact, as noted, AMMO is arguably in its best operating position ever - a fact that is beginning to generate considerable investor attention. And with its inclusion into the Russell indexes later this month combined with an expected adjusted EBITDA to reach
Furthermore, while AMMO's expected 206% increase in YoY revenues is already impressive, another deal finalized last month could make that estimate conservative. In May, the company announced a seven-figure high-margin international ammunition transaction. That agreement came after the already bullish guidance and positions AMMO to beat expectations once again. Not to mention - all of these incoming revenues are bolstered by an exceptionally strong 50% or more gross profit margin.
Even better, AMMO believes its international business is positioned for considerable expansion, noting that as the global economy continues to recover from COVID-related slowdowns, it's
Undoubtedly, AMMO is an example of a company that expertly navigated pandemic-related challenges. As a result, AMMO is prepared to meet substantial global demand and have its revenues be more impactful than ever from an operational perspective.
Thus, with AMMO firing on all cylinders, current prices fail to factor in its intrinsic value and also neglect the inherent value from its
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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