Savvy Trades and Investments

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Anyone still following AMS? Stock had been doing well this year...then shot up to the $3.70's on volume a couple weeks ago. Now dropping back below $3. I think worth accumulating here after what sounds like some pretty exciting news last Friday (more on that later).

For some background, AMS is a solid microcap. They've been earning .05/share or so per quarter lately. They've got an excellent balance sheet with tangible book value near $4, including almost half that in cash. They should have a fairly recession-proof business. Add all that up and I think the stock is attractive in the $2's. Plus AMS has a low float. If they ever announce their 2nd proton therapy agreement, this low floater would probably double or triple in a day. Been waiting on that for years though...so not exactly holding my breath.

Anyway back to the PR on Friday. Looked like typical humdrum news about management. But buried in that PR was how this new guy (who joined the company last September and is now being promoted to CEO) had a key role in winning a $1.3M order already in 2023. No not a huge order. But for a company like AMS, with quarterly revenues in the $4.5M-$5M range, it'll move the needle rather significantly. They said the $1.3M order would ship in Q2...so that should be a terrific looking quarter. With revenues over $6M and potentially earnings of .10+/share. Worth buying for that alone imo.

The Q2 report won't be out til August, so plenty of time to accumulate. And maybe we can snag AMS in the mid $2's on a market dip. But what makes this order so exciting is that it represents a new customer. And possibly a whole new revenue stream. Any thoughts on this?

“Peter Gaccione succeeds me as CEO after joining AMS six months ago as COO and after 40 years in the medical oncology business, including 23 years with Elekta AB, an important partner to AMS. Since he joined AMS, he has worked hard to understand the workings of our company and has helped to fill our sales pipeline with solid leads supported by the experienced sales team that we have in place. In fact, Peter was instrumental in booking our first order of the year. The $1.3 million order is expected to ship in the current second quarter and opens the door for a potential long term relationship with a new customer. The order also strengthens our relationship with Elekta, who asked if AMS could quickly accommodate this customer, and we did.”

Full PR-

https://finance.yahoo.com/news/american-shared-hospital-services-realigns-123000519.html