AMLJ Communications (fka AMLJ)

[Knowledge is King]

AMLJ conference call notes


I listened to the AMLJ CC after the close yesterday and, overall, I think the stock is a great LT holding. Here's some key points:


--Chmn/CEO Inbar stated that UAV programs throughout the defense industry are only in "low-level production" currently. The upshot is that, as production ramps up, significant repeat orders are expected by AMLJ down the line.

--Inbar went on to say that AMLJ has a number of products under development addressing the UAV market.

--He said management has not "sold shares in a long time."

--This might need to be checked, but I'm pretty sure that he said Q4 results were impacted by bonus/pension plan expenses.

--Backlog is $5M (don't know as of what date).

--When asked what they intend to do with their growing cash pile, Inbar said that they intend to hire an M&A firm to seek out appropriate acquisiton candidates.

--Perhaps the most intriguing part of the call was this: Inbar stated that AMLJ is developing a new defense-related product about which he could not say much, except that they are targeting a 9/10 "milestone". If all goes as planned, he went on to state that AMLJ will create a new company to house this product, and then seemed to imply that that might be spun off.

--When pressed by a caller, Inbar committed to revealing more about the company's defense contracts/potential on the next CC.

--Another caller asked for guidance, to which Inbar rambled on about getting objective analyst coverage through which he could "channel" such guidance. It didn't sound imminent to me.

--Inbar views AMLJ's BB listing as "a problem" but didn't go on to suggest what he might do about it.

--And, finally, Mica-Tech appears dead in the water based on his comments to another caller who asked about a Mica update.

Overall, there's enough value in the current operations, and enough potential if things fall right, for AMLJ to appreciate considerably from here...all IMHO.