Ammo Inc.’s Management Gives Activist Shareholder Plenty of Ammunition
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I first became aware of Ammo Inc. (“Ammo”) after reading Brandon Beylo’s article on it last year (https://macro-ops.com/how-poww-transformed-into-an-online-marketplace-powerhouse/). I found it interesting. You had a small-cap company put together by an entrepreneur and it seemed like there were several ways to win. First off, Ammo manufactured ammunition for mostly consumer sales. Ammunition was in short supply due to the impact of COVID 19, which caused first, a rush to buy ammunition, and second, an increase in first-time gun owners, which exasperated the ammunition shortage. Shortly after the article came out, President Biden banned the import of ammunition and ammunition raw materials from Russia, which exasperated the shortage. Aside from benefiting from a shortage of ammunition, Ammo was introducing interesting proprietary products, such as non-incendiary tracer rounds (I recently bought my first box and I am anxious to try them out), as well as made a push into government sales. This is all well and good, but what really excited me was Ammo’s then recent purchase of GunBroker.com. I had used that service before and in my mind, it was the eBay of guns. Aside from having a growing user base, and revenue stream, I thought that Ammo could use GunBroker.com to sell some of its ammunition directly to consumers, and trade up from wholesale margins to retail margins. Aside from being the eBay for guns, GunBroker.com ensures that Federally Licenses Firearm dealers ship firearms on behalf of the seller to another licensed dealer on behalf of the buyer. The receiving dealer then ensures compliance with federal, state, and local firearm regulations such as background checks, waiting periods, registrations, etc. This feature of it, make the business a likely beneficiary of any future gun control legislation. Ammo also began construction on a new manufacturing facility. Which would increase their manufacturing capabilities. The facility was finished this summer.
Ammo Inc.’s Management Gives Activist Shareholder Plenty of Ammunition
Ammo Inc.’s Management Gives Activist…
Ammo Inc.’s Management Gives Activist Shareholder Plenty of Ammunition
I first became aware of Ammo Inc. (“Ammo”) after reading Brandon Beylo’s article on it last year (https://macro-ops.com/how-poww-transformed-into-an-online-marketplace-powerhouse/). I found it interesting. You had a small-cap company put together by an entrepreneur and it seemed like there were several ways to win. First off, Ammo manufactured ammunition for mostly consumer sales. Ammunition was in short supply due to the impact of COVID 19, which caused first, a rush to buy ammunition, and second, an increase in first-time gun owners, which exasperated the ammunition shortage. Shortly after the article came out, President Biden banned the import of ammunition and ammunition raw materials from Russia, which exasperated the shortage. Aside from benefiting from a shortage of ammunition, Ammo was introducing interesting proprietary products, such as non-incendiary tracer rounds (I recently bought my first box and I am anxious to try them out), as well as made a push into government sales. This is all well and good, but what really excited me was Ammo’s then recent purchase of GunBroker.com. I had used that service before and in my mind, it was the eBay of guns. Aside from having a growing user base, and revenue stream, I thought that Ammo could use GunBroker.com to sell some of its ammunition directly to consumers, and trade up from wholesale margins to retail margins. Aside from being the eBay for guns, GunBroker.com ensures that Federally Licenses Firearm dealers ship firearms on behalf of the seller to another licensed dealer on behalf of the buyer. The receiving dealer then ensures compliance with federal, state, and local firearm regulations such as background checks, waiting periods, registrations, etc. This feature of it, make the business a likely beneficiary of any future gun control legislation. Ammo also began construction on a new manufacturing facility. Which would increase their manufacturing capabilities. The facility was finished this summer.