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New Opportunity: Alliance MMA Inc. (NASDAQ: AMMA)
We’ve been selective of late because we want to only alert you to ideas that we think have everything it takes to offer a serious opportunity with major upside potential.
Today’s new alert is a perfect example: AMMA is the only pure play publicly traded name in the huge growth boom that is the sport of Mixed Martial Arts ultimate fighting.
The stock has been beaten way down off its IPO. The whole mess has left this stock at levels that may be a HUGE gift right now. You need to check this stock out now!
Symbol: AMMA
Company: Alliance MMA Inc.
Quote: http://finance.yahoo.com/q?s=AMMA
Latest News: http://finance.yahoo.com/q/h?s=AMMA+Headlines
Who is AMMA
Alliance MMA Inc. (NASDAQ: AMMA) focuses on mixed martial arts (MMA) promotional activities. It operates through live MMA Event Promotions, MMA Content Distribution, and Sponsorships and Promotion segments.
The company intends to create a developmental league for professional MMA fighters and a feeder organization to the Ultimate Fighting Championship; to serve as a developmental organization for other premier MMA promotions, such as Bellator MMA. Alliance MMA, Inc. was incorporated in 2015 and is based in New York, New York.
MMA as a sport has truly arrived. One key is that it finally has true, transcendent star power in the person of Conor McGregor. His fight with Eddie Alvarez headlined UFC 205, and set a new gate ticket sales record at the most famous sports venue in the world, Madison Square Garden, bringing in a gate of $17M.
To give you some sense of the growth rate as a return on invested capital in this market segment, UFC (another U.S.-based mixed martial arts promotion company) was recently sold for $4B after being purchased in 2001 for $2M!
To further highlight the point, the sports marketing research firm Repucom projected that the current number of worldwide MMA fans is approximately 300 million – which is equal to the total population of the US!
While there are some tussles going on right now in the stock, as investors, we need to take a look at how much value might be up for grabs here just based on the business potential. Based on simple analysis, the growth potential here is enormous in the MMA space, and there is nowhere to go for investors but into shares of AMMA.
Major Catalysts
AMMA had a major month of April, promoting four major MMA events. The stock has been preoccupied with other issues and has failed to price in any of the jump in growth implied by how the actual business has operated over the last two months on a combined basis.
“Last month was tremendous for Alliance MMA, with two sold-out events including our first event in the Southern California market and another appearance by Dana White filming ‘Dana White: Lookin’ for a Fight’,” said Robert Haydak, President of Alliance MMA. “April will be a memorable month with fights scheduled in four important markets throughout the country. These are great events fans will want to see.”
One of the fastest ways to solidify a growth plan in a growth space is through acquisitions. So far, AMMA has already announced two acquisitions this year.
In January 2017, AMMA announced the acquisition of SuckerPunch Entertainment (one of the world’s top MMA marketing and fighter management companies). According to the release, the acquisition could bring AMMA over 100 fighters under management contracts, worldwide. These fighters include UFC strawweight champion Joanna Jedrzejczyk and UFC interim featherweight titleholder Max Holloway. This acquisition could potentially bring in more revenue and earnings for Alliance MMA, which could translate to a rise in its stock price.
According to Alliance MMA President Robert Haydak, “We expect that SuckerPunch will prove to be an extraordinary addition to the Alliance MMA organization…Their broad experience in managing a number of the sport’s top fighters will bolster our ongoing effort to expand the growing family of Alliance athletes, and will fortify Alliance’s position as a prominent force in the MMA community.”
Just a day later, the company announced its acquisition the assets of the premier MMA promotion in Florida, Fight Time Promotions. The organization, which was founded by Karla Guadamuz-Davis and her husband, the late Olympic Gold Medalist Howard Davis Jr., will be the eighth regional MMA promotion operating under the Company’s umbrella.
We have already seen two other letters of intent for additional acquisitions. Each one of these represents a bet made by the company that it is buying into a growing market segment.
And as we already covered above, that bet looks to be extremely well-founded based on the data we can find!
Technical Analysis
Shares of the stock have been hammered lower of late on issues that have nothing to do with the operational growth potential of the business or the stock. That may be creating a huge opportunity here for new traders.
RSI is registering an almost unheard-of 13 to15 level, which is as technically oversold as we have ever seen a stock before. Given the other issues hitting the stock, short interest is likely very high right now and this stock is trading on a float of just over 8 Million shares.
That all adds up to an insane rally potential if things turn around from here, especially given the huge growth potential that appears to be inherent in the stock right here on an operational basis.
About AMMA
AMMA (Alliance MMA Inc.) focuses on mixed martial arts (MMA) promotional activities. It operates through live MMA Event Promotions, MMA Content Distribution, and Sponsorships and Promotion segments. The company intends to create a developmental league for professional MMA fighters and a feeder organization to the Ultimate Fighting Championship; to serve as a developmental organization for other premier MMA promotions, such as Bellator MMA. Alliance MMA, Inc. was incorporated in 2015 and is based in New York, New York.
Highlights:
- AMMA is the only clear publicly traded pure play on the MMA revolution, which is possibly the fastest growing major global sport in the world at present.
- AMMA has a trading float of just over 8 million shares, suggesting a massive rally potential on any influx of new interest.
- AMMA is coming off an RSI trough under 15, pointing to an insanely oversold stock now possibly gearing up to head back the other way.
- AMMA likely is now carrying a high short interest given the negative sentiment on the stock due to recent non-operational press on the name.
- AMMA is on an M&A binge.. given the growth in the space, the market may be willing to reward this over time given the high ROI implied by that scenario
Conclusion
AMMA is a stock that has been beaten down to an extreme rarely seen in the stock market, and on issues that are not necessarily reflective of the company’s true operational potential. This is the only place to go for investors in public markets that wish to gain exposure to the MMA juggernaut, which is driven by 300M fans and growing worldwide and is now capable of breaking Madison Square Garden ticket sales records.
AMMA is likely now laden with shorts and has a tiny float. If a bounce gets started from this 15 RSI level, the sky may be the limit.
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