Despite the effect of the blood sucking, parasitic class-action happy legal teams, that leach onto prey in what amounts to a quasi-legal form of extortion, AMMA continues to do what they have set out to do, acquire regional promotion companies that may offer either immediate or near-term accretive value.
Last Wednesday, AMMA announced their latest acquisition, making it the ninth promotion company brought under the AMMA umbrella of assets since 2016. Shares advanced over 13% on the news, closing at $1.54 a share. Since May 1st, shares in are AMMA higher by over 41% on greater than average volume.
AMMA’s Latest Acquisition
AMMA’s most recent acquisition includes the assets of National Fighting Championship (NFC), a regional promotion company that produces professional MMA events throughout Georgia and South Carolina.
NFC, rebranded from Undisputed Productions, has promoted more than 100 MMA events and has continued an expansion plan throughout Georgia and South Carolina. NFC has marketed high profile events in venues throughout the region including MMA fights at Center Stage in Atlanta, Infinite Energy Arena in Georgia and the TD Convention Center in South Carolina.
Commenting on both the acquisition and strategy at AMMA, Robert Haydak, President of Alliance MMA stated, “We are effectively and systematically continuing to execute our strategy of aggressively acquiring leading regional MMA promotions across the country.” He continued by saying, “The addition of NFC to the Alliance MMA enterprise clearly validates the ongoing success of our business model. Their documented experience in producing outstanding MMA events, and the fact that they have established a solid brand name in Atlanta, one of our remaining targeted top 20 national media markets, makes NFC an ideal fit for Alliance MMA.”
The AMMA Growth Plan Continues Undeterred
The company remains spot on when it comes to executing on its strategic initiatives. NFC joins a list of already consummated deals that enrich the promotion capability of AMMA on a widening regional level. NFC joins other successful promotion companies under the AMMA umbrella. Assets include Cage Fury Fighting Championship (CFFC), Washington-based Combat Games MMA (COGA), Illinois-based Hoosier Fight Club (HFC), and Tennessee-based V3 Fights. Additional regional performers include Maryland-based Shogun Fights, Ohio-based Iron Tiger Fight Series (IT Fight Series), Florida-based Fight Time Promotions, and a San Diego-based promotion under the guidance of MMA luminary Eric Del Fierro.
AMMA expects to promote over 125 events per year, showcasing more than 1000 professional MMA fighters. The company owns additional assets which are expected to generate value through marketing, media, broadcast and sponsorship opportunities. AMMA’s events are recognized and supported by state athletic commissions in all 50 states.
Look At AMMA Fundamentals, Not Robot-Generated Legal Ad’s
Once the hysterics wither away and the legal firms migrate to weaker fish, AMMA should begin to reflect the value deserved. The details of the case are vague, and appear to affect insiders more than it does any retail investor. Thus, I don’t see the value for a retail plaintiff and expect the case to fail. But, as many investors know, once a single firm trolls for a client, the inevitable onslaught of followers emerge, adding to the hysterics that drive share prices down without regard to the actual intrinsic value in a company.
I see things as they exist. The opportunistic vision at AMMA is intact, and the acquisition strategy is continuing to develop as planned. Each acquisition adds value, and until the share price realizes these asset gains, investors may enjoy a welcome opportunity at depressed levels. Warning though, these legal solicitations only work if the stock price remains depressed, so, be nimble when building a position. Until investors can absorb headlines without seeing them get buried by legal solicitations, buying opportunities may present themselves, as short sellers try to capitalize on nervous longs that pay more attention to hype than to fundamentals.
Disclosure: This article was written by Kenny Soulstring, and it reflects my own opinions and unique articulation. This article is not intended to offer investing advice, guarantee 100% accurate predictions or to be interpreted as providing a personal recommendation. What I can guarantee, though, is accurate research, thoughtful analysis and an enthusiasm about any stock that I cover.
While I seek to uncover emerging companies that I feel have true value and potential, it’s important that investors assign an appropriate time horizon to each of their investments, understanding that emerging companies need time to mature.
I wrote this article myself and it includes my own research and expresses my own opinions. I am not receiving compensation for it (other than from CNA Finance). I have no business relationship with any company whose stock is mentioned in this article.
Additional Disclosure: I am long AMMA and may purchase additional shares within the next 72 hours.
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