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Date : September 27, 2017

AMMA is Flashing Major Growth Signals

The action has been heating up like crazy of late, with our picks running higher in back to back to back big breakout moves. And it would appear we have good odds on a fourth:

AMMA just broke above its key trend moving average. The stock is trading on a tiny 9M share float and just produced financial results showing a major jump in sales on a q/q basis. Recent updates on promotional events suggest that growth curve is further accelerating right now.

That puts this one squarely on our radar right 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

Website: https://www.alliancemma.com/

Who is AMMA

AMMA fighter

Alliance MMA Inc. (NASDAQ: AMMA) is a professional mixed martial arts (MMA) company that brings together the best regional productions. Alliance MMA’s mission is to identify and cultivate the next generation of fighters and champions for the Ultimate Fighting Championship (UFC) and other premier MMA promotions.

With some of the world’s leading MMA promotions under the Alliance MMA umbrella, the organization aims eventually to host in excess of 125 events per year, showcasing more than 1,000 fighters. Alliance MMA is also dedicated to generating live original sports media content, attracting an international fan base, and securing major brand sponsorship revenue for live MMA events, digital media, and Alliance MMA fighters.

MMA is the world’s fastest growing sport with worldwide fans of approximately 300 million according to sports marketing research firm Repucom. MMA is a full contact sport that allows a wide range of fighting techniques, including striking and grappling from various martial arts and disciplines including Boxing, Wrestling, Brazilian Jiu Jitsu, Karate and Muay Thai. Professional MMA fights are legal and regulated by state athletic commissions in all 50 states.

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.

amma stock quote

Recent Catalysts

One of the most important recent catalysts for the company was its “proof in the pudding” Q2 results. The quarter featured a sequential 48% top-line growth number resulting in sales of $1.11M, which is huge. Management also points to the 14% jump in operating margins to 43%. In other words, the company is executing.

But it’s important to understand that this is largely an M&A play at this point. The company is growing through acquisitions. That’s why we would further point to commentary related to the $1.5M capital raise. That will fund more strong acquisition activity in the second half of the year.

We would also point to the company’s growth in promotional events as a key metric. You want to see this number rising steadily on a monthly basis. And so far, that’s exactly what we have been seeing, with 6 events in July, 7 in August, and 8 in September.

amma stock quotes

“Our record-setting expansion continues in August with Alliance MMA producing seven events in a single month,” said Paul K. Danner, Chief Executive Officer of Alliance MMA. “Now that we have established a persistent Company presence in eleven regional markets, our ability to eventually scale to at least 125 professional MMA events per year is becoming more apparent. We are continuing in our quest to cover the top 20 domestic media markets with an Alliance MMA property, and remain on track to do so within the next two calendar quarters.”

From what we can see, that momentum looks set to continue, with the company recently nailing down a new venue deal with Xtreme Action Park in Fort Lauderdale, Florida. Fight Time Promotions will continue its 2017 MMA season in the new location, which is Florida’s largest indoor entertainment venue.

“We’re very excited to call Xtreme Action Park our new home,” said Karla Guadamuz-Davis, co-founder of Fight Time Promotions and General Manager. “Our fans, fighters and corporate sponsors will love this new venue, and we’re ecstatic to partner with the amazing people behind this facility.”

Technical Analysis

The stock appears to have found key support along the $1.10 level, which represents a “higher low”, and comes in confluence with a supportive trend in RSI prints going back to the stock’s deep dive in the Spring.

The larger pattern looks to be a cup-with-handle base under construction, with present levels representing potentially the most opportunistic entry point in the pattern – the base of the handle.

We also just witnessed an important move this week as AMMA shares broke clearly above the stock’s 50-day simple moving average.

AMMA.Chart

About AMMA

let the fight begin

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 9 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
  • AMMA is making real money, with trailing revs already coming in at $2.5M.

Conclusion

AMMA is a growth play in a growth niche. The MMA space in general is made for this approach. In this type of play, the only real issue is access to funding. If you have the capital, you can generate the growth, particularly if you are capable of executing with operational efficiency.

This company looks to be hitting on all cylinders right now, and the recent breakout and basing pattern show it.

Screen Shot 2017-09-27 at 9.32.11 PM

Do not invest more than you are willing to lose. No one likes to consider the worst case, but it’s always a risk that exists. Rule of thumb – if you cannot sleep at night as a consequence of your investment, then you have over invested.Keep calm. Do not chase. Decide for yourself if you like the trade. If you are not comfortable with the perceived risks, stay out. Timelines are to be decided by you. Approach methodically, and seek technical confirmation for direction. Always trade with a strategy in mind.Never use market orders. Only use buy and sell limit orders. Protecting your investment is more important than missing gains. Use “trailing stop %” or “trailing stop limit” orders. Personally I prefer mental stops while actively managing trades rather than entering your stop into your brokerage account.Cut losses quickly when day/swing trading. It’s better to acknowledge being wrong than to have false hope. Sometimes you will be wrong in doing so, often times it will save you. It all depends on your entry.Actively manage all your investments & trade during market hours only. Trading during pre/post market hours carries greater volatility/risk.

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Disclaimer :

We do not advise any reader take any specific action. Losses can be larger than expected if the company experiences any problems with liquidity or wide spreads. Our website and newsletter are for entertainment purposes only. Never invest purely based on our alerts. Gains mentioned in our newsletter and on our website may be based on end-of-day or intraday data. This publication and their owners and affiliates may hold positions in the securities mentioned in our alerts, which we may sell at any time without notice to our subscribers, which may have a negative impact on share prices. If we own any shares we will list the information relevant to the stock and number of shares here.  Mybeststockpicks owns no shares of any of the companies mentioned here within, nor intends to buy any in the future. mybeststockpicks  has been compensated total of two thousand dollars by ALG Financial  to perform 1 week  investors awareness advertisement on  AMMA starting 27/09/2017 Read More

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