Alpine 4 Technologies (OTCMKTS:ALPP) has been a big winner for investors. The stock pulled from $0.0088 low in August to hit $0.4111 high in November, thereby returning more than 4,500% in a space of roughly three months. Therefore, the past several months have been a period of profit-taking in Alpine 4, which explains why the stock has come down to $0.0725 currently.
From multimillion-dollar contract wins to financing deal, there have been a lot of developments at Alpine 4 recently that are sure to renew investor interest in the stock. Therefore, we are again at a point where the stock looks poised for a major breakout. Before we delve into the details about why Alpine 4 stock is again on the radar of many investors, here is a brief profile of the company we’re discussing.
For those investors who may have just come across Alpine 4 Technologies for the very first time, this is a holding company of multiple subsidiaries. It operates in several industries from its various units. Across its various subsidiaries, Alpine 4 is focused on how technology can drive innovation and business success.
The Alpine 4 management has not relented in its efforts to grow the company, including through strategic acquisitions that have started bearing fruits. And before cash could become a problem, Alpine 4 recently inked a financing deal with a respected institutional investor. Below are some of the reasons Alpine 4 stock is attracting renewed investor interest.
Deluxe Sheet Metal adds to work backlog with $1.0 million contracts win
Deluxe Sheet Metal, a subsidiary of Alpine 4, last month won two new contracts totaling $1.0 million from a long-term customer. The new contracts add to Deluxe’s growing work backlog and puts both the subsidiary and its parent Alpine 4 on track for solid revenue growth in 2020 and 2021.
Alpine 4 acquired Deluxe in November 2019 to expand its construction services division that already included Morris Sheet Metal. Notably, Deluxe became the sixth business that Alpine 4 has acquired in the past four years as it expands and diversify its operations to maximize shareholder value.
Deluxe operates in the commercial and industrial sheet metal installations space. It has been in business since 1956 and its clients include General Electric (NYSE:GE) and the University of Norte Dame. In addition to expanding Alpine 4’s operation, the company said the acquisition of Deluxe would allow it to save $1.4 million annually in costs.
The Deluxe contract win came on the back of Alpine 4’s Morris Sheet Metal subsidiary also securing $2.2 million construction project contracts that will reflect on Alpine 4’s financial results for 2020.
OTCMKTS:ALPP subsidiary Quality Circuit Assembly wins $1.5 million in new contracts
Quality Circuit Assembly (QCA), a subsidiary of Alpine 4, has in recent months won several contracts totaling $1.5 million in revenue. QCA has been in business since 1988 and is engaged in providing manufacturing support. The latest contracts came from both new and existing customers in electric vehicle and robotics industries. The new contracts will reflect on QCA’s 2020 first quarter results and generally boost the financial results of parent company Alpine 4.
Alpine 4 secures $10 million financing deal to advance its business objectives
Cash shortage in a business can lead to loss of great opportunities. Aware of this risk, Alpine 4 recently entered into a financing arrangement that will ensure that cash shortage doesn’t stop it from achieving its goals. Alpine 4 has talked to Lincoln Park Capital Fund (LPC) to make $10 million in cash available for it to access whenever it wants to finance its development. The funds that LPC is making available to Alpine 4 isn’t a loan. Instead, Alpine 4 entered an equity purchase agreement with LPC. Therefore, the arrangement with LPC allows Alpine 4 to access cash under favorable terms and also helps it reduce its debt burden.
Alpine 4 forecasts 96% annual revenue growth
OTCMKTS:ALPP is gearing up to report its financial results for full-year 2019. The company expects to report revenue of $28 million for the year, reflecting expected revenue growth of 96% over 2018 revenue.
But Alpine 4 has a history of being conservative in its growth projections. Therefore, you shouldn’t be surprised the actual revenue exceeds the forecast amount. In the third quarter of 2019, for instance, Alpine 4 forecast 43% year-over-year revenue growth but it actually ended up reporting 63% year-over-year revenue growth for the quarter.
OTCMKTS:ALPP has kicked off 2020 on a high note with big contract wins that put it on course for another year of record revenue. The contract wins are a major reason investors are starting to take keen interest in Alpine 4 stock in the New Year. There are still new highs to be made in OTCMKTS:ALPP.
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Disclosure: We have no position in OTCMKTS:ALPP and have not been compensated for this article.