Alpine 4 Technologies (ALPP) is up 5600% since November

The stock price of Alpine 4 Technologies (OTCQB: ALPP) has been up 5600% in the last three months. The company is providing electronic contract manufacturing solutions. Even if this raise is justified by the fundamentals and it’s not just another speculation driving the stock price, I personally noticed that institutions do not hold it. However, in this article, I will highlight the reasons that the company’s price has been increasing.

Summary

  • The stock price has increased 5600% since November being traded now at $3. On November 16 the stock went from $0.04 to $0.8 per share on the 11th of December.
  • Alpine 4 Technologies entered an agreement with Impossible Aerospace a company known for building autonomous aircraft and drones.
  • Yesterday the CEO Issued an Annual Letter for 2021 being optimistic about 2021 additional acquisitions and expected revenue growths. He also mentioned part of his vision moving from the OTCQB to NASDAQ.
  • Expected annual growth is at least 19%, and if it weren’t for the pandemic, it would be more the CEO says in the letter.

 

About Alpine 4 Technologies Ltd.

Alpine 4 Technologies (OTCQB: ALPP) is an enterprise with business related to software, automotive technologies, electronics manufacturing and energy services. Alpine 4 aims to acquire companies that fit either in the Drivers category, Stabilizers or Facilitators. The company was founded on April 22, 2014, and is based in Phoenix, Arizona.

Drivers: Companies that have a large growth potential such as their subsidiary ALTIA.

Stabilizers: Companies that have steady revenue, loyal customers and will provide solid net profit returns to the company.

Facilitators: Companies that have synergistic relevance to the above two and contribute to the control of the ecosystem such as its subsidiary Quality Circuit Assembly.

Why is Alpine 4 Technologies stock up?

The stock price has increased 5600% since November being traded now at $3. However, the highest high the stock price hit is $4.49. On November 16 the stock went from $0.04 to $0.8 per share on the 11th of December.

Alpine 4 Technologies stock

The chart above is a daily representation of the stock price fluctuations. Below the chart, you can see the volume that has stabilized in the last couple of days. The price has recovered since its highest high and a new acquisition can make it go parabolic again.

17th of November

Alpine 4 Technologies enters the drone market with the acquisition of Impossible Aerospace. The company entered into a letter of intent (LOI) to acquire Vayu. Vayu is a high-performance manufacturer of autonomous aircraft, with vertical take-off and hybrid propulsion-based landing. It is the second acquisition that is happening in the sector of space. Vayu will join Alpine 4’s subsidiaries and the transaction will be completed in a reverse triangular merger.

Impossible Aerospace is a group of venture capital funds Bessemer Venture Partners, Eclipse Ventures, Airbus Ventures, and its CEO Spencer Gore. Its CEO has worked in Tesla and is going to help the company build the US-1 drone and assist in procuring new US military contracts.

23rd of November

Alpine 4 announced that Impossible Aerospace has delivered its final $1.5 million contract with United States Air Force. The US-1 is already at work protecting the nation’s defense systems.

2nd of December

Alpine 4’s subsidiary Excel Fabrication became an approved supplier of Varco Pruden Buildings of steel materials. Excel Fabrication has been supplying construction services in the US for the last 12 years. With this move, Alpine 4 will be able to expand its services in 7 other states.

Annual Letter for 2021

Yesterday the CEO of Alpine 4 issued an Annual Letter for 2021. In the letter, he is mentioning that the deal with Impossible Aerospace has gained global attention and expanded its shareholders internationally. He also highlighted “Starting in February, new international initiatives will begin to take hold with our soon to be formed holding company, A4 Aerospace, Inc., this will be the holding subsidiary for Impossible Aerospace and Vayu US, Inc. Vayu’s G1 and G2 platforms are paving the way to be the undisputed world leader in its field for range and payload. Increasing opportunities in; AfricaAustraliaCanada and other international markets. IA’s next generation drones will also be marketed to the US Department of Defense and our allies worldwide”.

Furthermore, the CEO mentioned that it’s part of their vision to move from the OTCQB market to the NASDAQ and be a leading conglomerate of innovative and synergistic companies.

The company is looking to acquire 2-3 additional companies in 2021

“Now on to the acquisition goals for 2021. In 2020 we closed on three businesses. Technically two, but I am considering the Vayu acquisition to have occurred in 2020. Based on where we are today, I believe we will acquire between 2 to 3 additional companies. These potential subsidiaries would be crucial additions in rounding out the A4 Construction Services, A4 Manufacturing and A4 Aerospace holdings. Based on the current size of Alpine 4, we are conducting due diligence on acquisitions that could add an additional $25m to $40m in annualized revenue”.

Financials

The company has a revenue growth year to year of 39.73%. Its market capitalization is not big enough standing at $456.36 million. However, the estimated annual revenue grew by at least 19% or $33.5 million for 2020, mentioned by the CEO in his annual letter. The company was hit by the COVID-19 pandemic and if it was not for that it would have grown even more. Alpine 4 managed to keep its 92% workforce but without being able to match revenue. Therefore, this added to their operating costs and expanded its losses in 2020.

Disclaimer – I/we have no position in any stock mentioned. I wrote this article myself, and it expresses my personal opinions. I am not receiving any compensation for it, other than FDGT Academy. I do not have or had in the past any business relationship with any company that is mentioned in the above article.

Natalia C. - Junior Analyst at FDGT Academy

Natalia C. - Junior Analyst at FDGT Academy

I am a stock analyst/investor with prior experience and knowledge to BSc Accounting and Finance. After completing my degree and exposure to the accounting firms I decided that the direction I should choose is towards the Investment world. I completed my masters in Investment Management where it gave me solid fundamentals to build my career on. I have examined a lot of different aspects of investment, from REITS, derivatives, currencies, bonds, equity and hedge funds. I never stopped learning about the market which is why I can analyze and write articles for FDGT community always personally opinionated. My passion are green energy and electric vehicles stocks as a whole. I also had my share of analyzing the work form home stocks that are coming to take over in the upcoming years.