AML3D Ltd (AL3)

Hi Sidney,

An advertorial may not be the right term, but Next Investors ‘share research’ in a company and then charge the company a fee for the service – so it is paid, yes. We are cynical (like you), and this reminds us of a common saying in the market, if you are not paying for a product, you are the product. Lots of areas this applies to in the markets.

With regard to research in general, say from a broker, they might not have such a clear-cut model as Next Investors, but they do write research on companies with the hope/intention of getting paid through corporate transactions and the like, so, from our perspective, we do keep that in mind when reading such research.

With regard to AL3, we are not close to this $80mn metal fabrication – defence business and we have little insight into whether or not it has substance.  We would say, that after such a big pop on the back of a promo report, we would not be getting involved with the hype at current levels, instead, if we were truly interested, we would let the dust settle.

If we held a “speccy” like this and it more than doubled in a week based on a paid report, we would feed the ducks while they are quaking! i.e. take at least part profit, especially when 15% of the company’s market cap. changes hands in one day. Thats not to say there is no foundation to the move, just that it seems excessive.

• In February, AML3D reported half-year revenue of $1.51 million, compared to $146k in the prior corresponding period.

• In May, the company secured a $350,000 contract with the Australian Government, alongside a $1.54 million order from the US Department of Defence. They also received a $1.12 million grant from the South Australian Economic Recovery Fund to develop its 3D printing technology.

• This week, AML3D announced a $1.1mn sale of its 2600 Edition ARCEMY system to Laser Welding Solutions, a supplier to the US Navy. The deal includes a one-year service and maintenance contract, adding to AML3D’s recurring revenue stream.

Also, after DroneShield’s (DRO) spectacular 400% gains in 2024, we’ve probably seen traders switching into the potential next big thing in defense.

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AML3D Ltd (AL3)

LAST UPDATED 05/07/2024 16:35

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AML3D Ltd (AL3)

LAST UPDATED 05/07/2024 16:35