$ALPP A Retail Darling
Alpine 4 Holdings, Inc. (NASDAQ: ALPP) is one of retail investors’ favorites since its successful uplisting to the NASDAQ last October. Although ALPP stock plunged more than 80% since its NASDAQ listing, many investors are bullish the stock could be a bargain at its current PPS given the company’s growth potential. With the company’s subsidiaries recently launching a new solid state battery product line, ALPP could be poised for major growth in the long-term.
ALPP Fundamentals
Utilizing its disruptive DSF business model, ALPP acquires businesses that fit under its portfolio of holding in the aerospace, defense, technology, manufacturing, or consulting as part of its disruptive DSF business model. In this way, ALPP has been able to build its conglomerate with 14 subsidiaries under its umbrella. After acquiring these businesses, ALPP then works to vertically integrate these subsidiaries with each other to maximize these businesses’ potential. Based on this business model, ALPP stock is a long-term investment for many investors as the DSF model could allow the company to achieve substantial growth in the future.
As the DSF model allows for synergies between the company’s subsidiaries, ALPP’s subsidiaries Elecjet and RCA Commercial created a new solid state battery product line – Powerable. This product line utilizes the power of Elecjet’s AX class of solid state batteries to offer solutions for OEMs like marine, RV, and power generation industries that require more efficient power solutions than the current lithium-ion batteries.
With this in mind, ALPP is targeting the RV and Marine OEMs initially thanks to their new and after-market sales. In addition, both industries offer ALPP a total market opportunity of more than $5.5 billion which could be pivotal for the company’s ability to pursue growth opportunities in the future. As ALPP will be the first company to offer solid state battery solutions to its customers, ALPP stock could be a bargain at its current PPS considering this industry’s growth potential.
Moreover, ALPP has a major competitive advantage in the solid state battery solutions market as Elecjet is able to produce more than 160 thousand AX class cells per month which are pivotal for the production of the Powerable product line. Based on this, ALPP could secure a significant market share in this underserved market.
While the new product line is based on Elecjet’s AX class of solid state batteries, another ALPP subsidiary participated in the development of Powerable. Through Quality Circuit Assembly (QCA), ALPP is able to pack the batteries with state-of-the-art electronics and battery management systems. With 3 subsidiaries participating in the development of this product line, the DSF system once again proves that it could allow ALPP to achieve significant growth in the future. In this way, ALPP is confident it could secure a substantial market share as it also intends to utilize RCA’s distribution channels which could provide the company with significant revenues.
As for QCA, the subsidiary is moving its operations to a new facility in San Jose, California. This new facility will enable ALPP to showcase its ability to meet the needs of tech companies in Silicon Valley. To facilitate this, ALPP is in the process of upgrading this facility with a $2.1 million custom build out in progress as well as the installation of new equipment worth $1.4 million. Upon the completion of the installations and the build out, QCA intends to move into this new facility by late Q1 2023.
Upon the completion of this facility, QCA and Elecjet will work together to build a solid-state battery prototype production line. This new line will develop new generations of the AX class of batteries and provide small volume production runs utilizing QCA’s AS9100D Aerospace and ITAR Military certifications. To facilitate this, ALPP plans to invest $2 million into new equipment and employee training on this new line to have this line operational shortly after the facility’s opening. Since this facility will allow the company to grow its business substantially, ALPP stock could be well-positioned to surge on more news regarding the facility.
By constantly developing its solid state batteries, ALPP could witness major growth for its drone business done through its subsidiary Vayu. Currently, ALPP has 2 solid state battery powered drones and these breakthroughs in the company’s solid state batteries could improve the capabilities of these drones. In light of this synergy between these subsidiaries, ALPP is bullish it could realize more than $100 million in revenues for 2022 with the potential for further growth in the coming years. Considering the growth potential of this technology, ALPP stock could be a bargain at its current PPS.
Since the company’s endeavors require significant funding, ALPP entered into agreements with an institutional investor and other shareholders for the issuance of 14.4 million shares accompanied by warrants to purchase 14.4 million shares at $.69 per share. Through this offering, ALPP expects to realize $10 million which it intends to use to further develop its AX-03 class of solid state batteries and purchase materials to hedge against supply chain delays. While this dilution could have negative effects on shareholders in the short-term, it could set ALPP stock for further growth in the long-term. With the company clearly working to create value for its shareholders, ALPP stock could be one to hold onto for the long-term.
ALPP Financials
According to its Q2 report, ALPP increased its revenues from $133 million in Q4 2021 to $135.2 million and has $4.1 million in cash, $13 million in accounts receivable, as well as $25.6 million in inventory. Meanwhile, ALPP’s liabilities increased to $64.8 million compared to $60.9 million mainly due to an increase in operating lease obligations.
As for revenues, ALPP reported $25.2 million – an increase from $14.1 million a year ago – and generated a gross profit of $6.6 million. However, operating costs climbed to $9.4 million compared to $6.8 million in the same year-ago period. Despite this, ALPP reported a net profit of $2 million compared to a net loss of $3.1 million a year ago due to a $5.5 million gain on sale of property.
Although the company operated at a net profit, ALPP has a serious issue of cash burn. In Q2, the company had a negative operating cash flow of $7.2 million. Considering that the company has $4.1 million in cash on hand, ALPP could be forced to issue shares to finance its growth initiatives which could have a negative impact on shareholders.
Technical Analysis
ALPP stock price is currently at $.8895 and has supports at .7554 and .5717. The stock also shows resistances near 1.0305 and 1.2251. ALPP stock has been rebounding lately after reaching a new 52-week low but appears to be losing some of its momentum to fill the gaps on the chart. With this in mind, ALPP stock recently rebounded off its VWAP support and could be poised to run near $1 if it witnesses strong buying activity. However, there are gaps on the chart that have to fill which could see ALPP retest its support . Considering that ALPP plunged more than 80% since its uplisting to the NASDAQ, ALPP could be a low risk investment near its bottom.
Following the stock’s recent run to $1, accumulation had a steep downward trend but is currently witnessing a slight uptick and the MACD recently turned bullish. The RSI climbed from 34 to 50 which could signal a run for ALPP stock in the near term. Based on this, bullish investors could start a position at ALPP’s current PPS as the upside of the stock outweighs its risks given its low PPS. ALPP has an OS of 178.4 million and a float of 157.7 million.
ALPP Forecast
ALPP stock is a long-term hold for many investors thanks to the company’s disruptive DSF system. With the company creating synergies between subsidiaries especially the drone business and the solid state battery business, ALPP could be poised for major growth once its plans bear their fruits. Considering that the company is projecting more than $100 million in revenues, ALPP could be on track to deliver these projections thanks to its new Powerable product line. At the same time, the company’s plans for QCA’s new facility and the new solid state battery production line could set the company for significant financial growth in the future. Although the company has its own risks – especially cash burn and dilution, ALPP stock could be a bargain at its current PPS for long-term investors.
ALPP Fundamentals
Utilizing its disruptive DSF business model, ALPP acquires businesses that fit under its portfolio of holding in the aerospace, defense, technology, manufacturing, or consulting as part of its disruptive DSF business model. In this way, ALPP has been able to build its conglomerate with 14 subsidiaries under its umbrella. After acquiring these businesses, ALPP then works to vertically integrate these subsidiaries with each other to maximize these businesses’ potential. Based on this business model, ALPP stock is a long-term investment for many investors as the DSF model could allow the company to achieve substantial growth in the future.
As the DSF model allows for synergies between the company’s subsidiaries, ALPP’s subsidiaries Elecjet and RCA Commercial created a new solid state battery product line – Powerable. This product line utilizes the power of Elecjet’s AX class of solid state batteries to offer solutions for OEMs like marine, RV, and power generation industries that require more efficient power solutions than the current lithium-ion batteries.
With this in mind, ALPP is targeting the RV and Marine OEMs initially thanks to their new and after-market sales. In addition, both industries offer ALPP a total market opportunity of more than $5.5 billion which could be pivotal for the company’s ability to pursue growth opportunities in the future. As ALPP will be the first company to offer solid state battery solutions to its customers, ALPP stock could be a bargain at its current PPS considering this industry’s growth potential.
Moreover, ALPP has a major competitive advantage in the solid state battery solutions market as Elecjet is able to produce more than 160 thousand AX class cells per month which are pivotal for the production of the Powerable product line. Based on this, ALPP could secure a significant market share in this underserved market.
While the new product line is based on Elecjet’s AX class of solid state batteries, another ALPP subsidiary participated in the development of Powerable. Through Quality Circuit Assembly (QCA), ALPP is able to pack the batteries with state-of-the-art electronics and battery management systems. With 3 subsidiaries participating in the development of this product line, the DSF system once again proves that it could allow ALPP to achieve significant growth in the future. In this way, ALPP is confident it could secure a substantial market share as it also intends to utilize RCA’s distribution channels which could provide the company with significant revenues.
As for QCA, the subsidiary is moving its operations to a new facility in San Jose, California. This new facility will enable ALPP to showcase its ability to meet the needs of tech companies in Silicon Valley. To facilitate this, ALPP is in the process of upgrading this facility with a $2.1 million custom build out in progress as well as the installation of new equipment worth $1.4 million. Upon the completion of the installations and the build out, QCA intends to move into this new facility by late Q1 2023.
Upon the completion of this facility, QCA and Elecjet will work together to build a solid-state battery prototype production line. This new line will develop new generations of the AX class of batteries and provide small volume production runs utilizing QCA’s AS9100D Aerospace and ITAR Military certifications. To facilitate this, ALPP plans to invest $2 million into new equipment and employee training on this new line to have this line operational shortly after the facility’s opening. Since this facility will allow the company to grow its business substantially, ALPP stock could be well-positioned to surge on more news regarding the facility.
By constantly developing its solid state batteries, ALPP could witness major growth for its drone business done through its subsidiary Vayu. Currently, ALPP has 2 solid state battery powered drones and these breakthroughs in the company’s solid state batteries could improve the capabilities of these drones. In light of this synergy between these subsidiaries, ALPP is bullish it could realize more than $100 million in revenues for 2022 with the potential for further growth in the coming years. Considering the growth potential of this technology, ALPP stock could be a bargain at its current PPS.
Since the company’s endeavors require significant funding, ALPP entered into agreements with an institutional investor and other shareholders for the issuance of 14.4 million shares accompanied by warrants to purchase 14.4 million shares at $.69 per share. Through this offering, ALPP expects to realize $10 million which it intends to use to further develop its AX-03 class of solid state batteries and purchase materials to hedge against supply chain delays. While this dilution could have negative effects on shareholders in the short-term, it could set ALPP stock for further growth in the long-term. With the company clearly working to create value for its shareholders, ALPP stock could be one to hold onto for the long-term.
ALPP Financials
According to its Q2 report, ALPP increased its revenues from $133 million in Q4 2021 to $135.2 million and has $4.1 million in cash, $13 million in accounts receivable, as well as $25.6 million in inventory. Meanwhile, ALPP’s liabilities increased to $64.8 million compared to $60.9 million mainly due to an increase in operating lease obligations.
As for revenues, ALPP reported $25.2 million – an increase from $14.1 million a year ago – and generated a gross profit of $6.6 million. However, operating costs climbed to $9.4 million compared to $6.8 million in the same year-ago period. Despite this, ALPP reported a net profit of $2 million compared to a net loss of $3.1 million a year ago due to a $5.5 million gain on sale of property.
Although the company operated at a net profit, ALPP has a serious issue of cash burn. In Q2, the company had a negative operating cash flow of $7.2 million. Considering that the company has $4.1 million in cash on hand, ALPP could be forced to issue shares to finance its growth initiatives which could have a negative impact on shareholders.
Technical Analysis
ALPP stock price is currently at $.8895 and has supports at .7554 and .5717. The stock also shows resistances near 1.0305 and 1.2251. ALPP stock has been rebounding lately after reaching a new 52-week low but appears to be losing some of its momentum to fill the gaps on the chart. With this in mind, ALPP stock recently rebounded off its VWAP support and could be poised to run near $1 if it witnesses strong buying activity. However, there are gaps on the chart that have to fill which could see ALPP retest its support . Considering that ALPP plunged more than 80% since its uplisting to the NASDAQ, ALPP could be a low risk investment near its bottom.
Following the stock’s recent run to $1, accumulation had a steep downward trend but is currently witnessing a slight uptick and the MACD recently turned bullish. The RSI climbed from 34 to 50 which could signal a run for ALPP stock in the near term. Based on this, bullish investors could start a position at ALPP’s current PPS as the upside of the stock outweighs its risks given its low PPS. ALPP has an OS of 178.4 million and a float of 157.7 million.
ALPP Forecast
ALPP stock is a long-term hold for many investors thanks to the company’s disruptive DSF system. With the company creating synergies between subsidiaries especially the drone business and the solid state battery business, ALPP could be poised for major growth once its plans bear their fruits. Considering that the company is projecting more than $100 million in revenues, ALPP could be on track to deliver these projections thanks to its new Powerable product line. At the same time, the company’s plans for QCA’s new facility and the new solid state battery production line could set the company for significant financial growth in the future. Although the company has its own risks – especially cash burn and dilution, ALPP stock could be a bargain at its current PPS for long-term investors.
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