AMRK - Here's some more detail:
Analyst Lucas Pipes highlighted, "A-Mark is a vertically integrated wholesaler and retailer of precious metal bullion, bars, coins, and other products. We believe that the company's strategic position across the value chain allows for improved margin performance and expansion opportunities, which are not reflected in its current valuation of just 6.3x 2024 EV/EBITDA and 6.3x 2024 P/E. Our, albeit imperfect, comp group is trading at 9.4x 2024 EV/EBITDA and 8.3x 2024 P/E. The company's margins in the direct-to-consumer segment have been especially impressive, averaging 9.0% in the last two years. This is also the area where we believe A-Mark can still realize the most growth potential with new product offerings in the domestic market and further expansion overseas. On balance, we believe A-Mark's control of critical assets in the value chain is difficult to replicate for any one competitor and that A-Mark will continue to grow its direct-to-consumer and lending segment in new and existing markets. This should drive strong returns for shareholders in most precious metal price environments."
I have seen lots of $1 stocks with strong earnings and solid balance sheets triple, quadruple and more, but I have yet to see one go below zero.
