American Outdoor Brands Corp (AOUT)

[Portguyofva]

Some thoughts: Year over year growth remains strong, but the Qtr over Qtr growth SWHC has been enjoying slipped this Qtr. This combined with a net gain of ~$4.7M in Q2 related to discontinued operations is likely the source of the sell pressure on Friday. A deeper look at SWHC’s fundamentals still indicates a good turn around play with relatively easy comparisons for Q3 (Qtr ending 31 Jan). It is time to start monitoring closely the Qtr over Qtr results to ensure SWHC continues their winning ways. The debt balance is coming down nicely and it appears they are focusing on the core business. IMO, any sustained growth over the next couple Qtrs, even if significantly below the growth we have seen the last 3 Qtrs, should push the stock higher from current levels (below 10). Technically the 100 Day MA is holding, if it fails we would likely see a dip down to the 8.60 to 9 range. Near term I’m looking for a bounce that will likely fail to get to 11 and then some basing between 10 and 11 until we see the next Qtr results. I intend to not get greedy on any bounce and wait and see what the following price action looks like. IMO, if SWHC can continue to show any growth at all, a buy opportunity between the 200 day MA and 9 should yield a profitable trade. GLTA!