Amplitech Group Inc (AMPG)

[GlefdarLivermore]

Thanks for sharing your informed opinions. Questions: it seems that the LNA market is a new product line niche for AMPG, at least that is how the most recent earnings PR makes it sound:

"In early November, AmpliTech completed and released initial chip designs incorporating its LNA and other technologies for semiconductor fabrication and expects initial production units to be available by the end of Q1’22."

It sounds like they're claiming that they have developed a new line of products that have never been sold before, which increase the targetable market for their products to include new applications in new product categories.

This raises the questions:

(1) Are the new LNA chip designs actually proprietary and innovative? Or are they just generic technology within what is a new product category for AMPG to be selling in?

(2) If the new LNA chip designs are not proprietary, what is AMPG's competitive advantage? (Answer would probably be "none.") But the PR from October claims that the designs are proprietary (https://fintel.io/doc/sec-amplitech-group-inc-1518461-ex991-2021-october-04-18905-1231).

(3) The CEO had mentioned in a previous PR that current chips don't provide enough throughput to fully take advantage of 1 Gbps 5G speeds, and suggested or implied that AMPG's new chips will solve this problem. One must infer that either (A) the current chips he's talking about are chips in the same cost range as AMPG's, meaning that AMPG has a cost or margin advantage for delivering higher throughput chips than competitors, or (B) current chips from competitors cannot achieve these speeds.

(B) is obviously ridiculous -- it can't be true that AMPG is the only company with advanced enough technology to deliver these throughputs -- so the implication must be (A). But then that raises the question, how could they have a cost advantage over competitors?

(4) It also raises a question of whether they'd be capable of a technological innovation that produces that cost advantage, or whether the cost advantage is supposed to be produced by other factors such as supply chain advantages or more efficiently vertically integrated business divisions.

(5) Since you said you know the CEO from past associations, do you think that he is just lying, or would he not be saying that they're developing a new product line which solves a market problem (cost-effective 1 Gbps throughput for 5G applications) unless it was true?

(6) If they're lying, then why would they invest in expanded manufacturing capability and consolidate their offices into a new, larger HQ -- just as part of a smoke and mirrors act to sucker investors by keeping the growth narrative charade going?

(7) If (6) is true then why have there been some insider purchases this year (albeit not large ones) and no insider sales since 2018? Is it because you think that management are just using the company to milk an overpaid salary and insider sales would threaten to kill the goose by undermining the growth narrative charade?

(8) Why did Intracoastal Capital and Sabby make large 13G investments when the price was much higher as far as I can tell? Do these investments give some credibility to AMPG's claims about innovating into larger market categories, or are there alternative explanations that are more likely?

Unfortunately I have a large bag at a cost average of 4.70, but the whole small cap market has been getting murdered lately. I guess I've either been suckered badly or AMPG is in fact at a turning point with the new chip design facility and supposedly pending designs that are supposedly patentable and supposedly solve the under-1gbps throughput limitation suffered by other chips.