To be fair they have been in an uptrend since last July but yeah...

To be fair they have been in an uptrend since last July but yeah extremely undervalued. My guess is first we need the half yearly to say we secured the 400-500k profit, and then we need some certainty that revenue can be sustained into FY25 because as it stands now, we only have work secured to the end of FY24. They have said on multiple occasions that they are expecting more contracts into the second half of FY24, but her revenue is also quite choppy, being propped up by machine sales here and there.

I think at the moment though we have 30-50% of her revenue coming from contract manufacturing and the other half or so from machine sales which is nice. They just hired an interesting fellow and have announced several times now that they are looking to setup a facility in the US which I am assuming will be announced anytime soon or by the end of FY24 and shouldn't take longer than 3-6 months to do once started. My guess/speculation that I have stated in previous posts is that similar to 3DA, they have US finance courting her for strategic investments and even lining up a US market entry, but it would require a solid re-rate coming from further US Navy contracts and the official announcement of a US facility for that purpose.

Judging from everything I have read coming out of the US Navy and Defense Industry in general it is a priority to get 3D printing set up and churning away for the industry, and AML3D is one of a handful of companies at the forefront of a new defense industry being setup for defense purposes. All the legislative and certification hurdles have been passed and now we are just waiting on the final metal characterization contracts and small test contracts to go nicely for things to pick up. Once she is onshore and working towards bigger Navy contracts, she will have access to a ton of government funding just like 3DA got awarded recently for her domestic facility and other incentives and tax benefits towards setting up a similar facility.

Metal characterization contracts should be coming to completion as we speak, and parts could be going on subs as we speak just like last time. Last time there was a considerable lag of maybe 1-3 weeks after the contract was expected to be completed before we got follow up metal characterization contracts and the recent parts contract. Recently they also mentioned targeting aerospace work which I'm hoping is hinting at AS9100D certification finishing up soon which was the hurdle for work to continue with Boeing that AML has been doing with Boeing ever since that announcement (which also could be adding background costs for FY24, which I am guessing would be considered as an investment activity?). Either way things are looking good, progress is being made and news is impending.

I took another slither at 8.1 today to even out my share count. Give her a little more time, end of second half of FY24 is looking to improve on the first half and some more certainty around future revenue and this is a solid hold.

Not financial advice DYOR.