Atomos AMS - worth watching!
AMS is a 'cashed up' global software & hardware technology company. It specialises in video monitoring & recorders for the rapidly growing content creation market. Think YouTube, Twitch, Zoom or even high-end independent documentary creators & with the recent influx on online content, thanks to covid-19 lockdown, there is a lot of upside potential for AMS.
Atomos may have a new target market with coaches, tutor's and teachers nowaday's coming online!
Recent improved fundamentals show month on month increasing revenues as follows:
July '20 $2.975M (+50% on 2H FY20 average)
Aug '20 $3.173M (+60% on 2H FY20 average)
Sept '20 $3.967M (+100% on 2H FY20 average)
"Atomos’s AMS recovery against the second half of FY20 continues to progress well. Given the recent strong September, which was over double the average monthly revenue compared to the second half of FY20, average monthly revenue for the year to date is over 70%+ up in comparison to the second half of FY20.
When combined with the lower cost base and a strong balance sheet, the business is performing well and is poised to continue on its path of growth and improving profitability.
As a result, AMS now anticipate returning to pre-covid-19 revenue levels at the start of calendar year 2021 and with a more streamlined & cost-effective operating base."
"AMS lies in the middle of a wide & strong rising trend in the short term and a further rise within the trend is predicted. Given the positive short-term trend, the stock is expected to rise 77.16% during the next 3 months and, with a 90% probability hold a price between A$1.19 and A$1.35 at the end of this 3-month period." *unable to post/share relevant link sorry
DYOR as always.. Cheers tela
P.S. Pre-Covid.. AMS was trading up around $1.80 levels so some 'serious upside potential' methinks going forward if they can continue to 'tick off all the boxes' so to speak
Some food for thought on what I've read up about Atomos AMS
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Stephen Stanley for AU$124k worth of shares, at about AU$1.38 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price.
It's very possible they regret the purchase, but it's more likely they are bullish about the company.As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
The only individual insider to buy over the last year was Stephen Stanley.Stephen Stanley bought a total of 260K shares over the year at an average price of AU$0.94.Atomos insiders own about AU$19M worth of shares. That equates to 12% of the company.
This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
Simply Wall St Analysis:
Suggests trading at 25.3% below our estimate of its fair value
Earnings are forecast to grow 69.25% per year but has less than 1 year of cash runway (noting $11M raised in May '20 to accelerate growth etc.)
Been about a year since Atomos bought Timecode Systems.. but haven't heard any news/developments since? as wonder how this is going