Like all great fighters, Alliance MMA, Inc, (AMMA) is not taking nicely to the fact that its stock has been underperforming in recent weeks, despite the fact that the company has been producing consistent news related to their growth and acquisition strategy. Yesterday, shares of AMMA traded as high as $1.44 on a heavy surge in volume that is in excess of 10X normal trading averages. Since the early morning spike, shares have traded in a range of between 6%-14% higher on continued strong volume.
While no specific news is on the wires to contribute toward the volume and share price increase, investors may be expecting that the flurry of positive press generated by the company during the past two months may translate into a pattern that ultimately delivers sustainable revenues and earnings growth.
Growth At AMMA
The company has been active on its ambitious strategy, acquiring Roy Englebrecht Promotions in June and hosting numerous sanctioned promotional events throughout the country that have featured prominent title bouts featuring many of the most promising and emerging fighters in the sport.
AMMA's strategy continues to deliver premiums and the goal of becoming the most prolific "minor league" contributor to MMA promotions is clearly taking shape. AMMA has presented fights on Dana White's Tuesday Night Contender Series, and reported promoting a record six events in the month of July alone. The stated goal by AMMA management is to promote at least 125 regional MMA events per year.
Events in July included promotions with Combat Games, Roy Engelbrecht Promotions, NFC 97, and the Iron Tiger Series scheduled for July 29th. To date AMMA has assembled eleven regional MMA promotion companies throughout the United States and is beginning to gain traction as becoming one of the premier "feeder" systems to offer both the UFC and Bellator the opportunity to view and sign AMMA fighters once they prove their merit to fight at the highest professional level.
Why The Spike?
While no news is currently on the wires, the old adage that "volume precedes price" may hold true here, with shares trading sharply higher throughout Wednesdays trading. AMMA is a company that has been on our watch list for some time now, and investors interested in watching this emerging company develop should stay close to CNA Finance for the most current and up to date developments at AMMA.
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