Alpine 4 Holdings Inc (ALPP)

[shareslanger]

IMO it’s a smart investment. The fundamentals are there.

- Revenue growing annually, up to $34M in 2020 and likely more going forward on ALPPs existing asset base (remember that the pre-Covid 2020 projections were much higher) as the US: either (1) returns to pre-Covid economic conditions or (2) learns to operate under a new normal. Either way will benefit ALPP. Especially with the push for more American made products from both political parties.

- Share structure is quite small at 125M a/s and 113M o/s. O/S has only increased by 3M since the beginning of 2020. The company is not diluting. Even during the Covid slowdown. The management team has never sold a share personally. Not in 2020 or ever. This team build ALPP from $0 to $34M and they are ready for more.

- Variable convertible debt is completely gone. Totally eliminated in 2020. To the best of my knowledge, management has no plans to finance using variable convertible debt in the future. They had no choice when the company first started. But now, as a much larger entity, they have access to more favorable financing options. Better financing also means that interest expense will continue to decrease.

- Multiple acquisitions are under DD. ALPPs business model is to have acquisitions under DD at all times. My understanding is that CEO Kent Wilson has 100+ deals come across his desk every year. There’s always a big market for mergers and acquisitions.

Now only a small handful of those acquisition opportunities get any serious DD commitment from ALPP. Most are quickly dismissed. But the point is that acquisitions are the business that ALPP is in. And acquisitions are always under DD.

When will the next one close?

I have no idea. Only insiders know that.

But the ALPP track record is there. They’ve closed 7 acquisitions to date. They want to close more. And more are always under DD.

As ALPP continues to execute, I’m confident that more will close and ALPP will continue growing (in addition to organic growth).

- The chart appears to have bottomed out. Some traders agree. Some don’t. It is what it is. The truth is nobody knows.

But IMO, I’ve seen many charts that look quite similar and as ALPP continues to execute, I believe we have a reversal coming.