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American Leisure Holdings Inc (OTCMKTS:AMLH) Turns Into A Microcap Runner

American Leisure Holdings Inc (OTCMKTS:AMLH) Turns Into A Microcap Runner
Written by
Jarrod Wesson
Published on
May 1, 2017
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Do you remember that Insider Financial recommended to follow the news about American Leisure Holdings, Inc. (OTC: AMLH) and the E-Sports industry? Thanks to the release of its annual report and new updates given by the CEO, readers who did so doubled their money invested a few weeks ago. In this article, we will assess them all. Additionally, we believe that investors are pushing up the price as they have got to know the size and the potential of the market. We will provide some more financial figures about this market that we found in an article published by the New York Times. We believe that investors will appreciate it as we believe that many of them are not familiar with these numbers. Have a look at the chart before we provide the new information.SourceCEO UpdateWe encourage shareholders of the company to follow the CEO, Christian Bishop, via his Facebook profile as he uses this channel very much and the share price sometimes reacts to information delivered there. On April 28, 2017, for example, he announced in this video that the company will be covering events for the DreamHack organization and also the company had hired a new negotiations specialist to help complete a new deal with the National Football League. He also noted this information on Twitter. Have a look here. Traders celebrated this information by pushing up the share price approximately 15%.Annual reportOn April 26, 2017, the company delivered its 2016 Annual Report. The market celebrated the news as traders bought large stakes in the company and made the share price spike. Fast traders and savvy individuals profited more than 95% in a short time span. We assessed the financial figures reported and found out that the amount of assets is almost 4 times the amount of liabilities. Thus, the balance sheet seems quite clean. The most important assets are license agreements and the most relevant liability is long term debt. The following is the spike caused by this new information:SourceDebt Conversion to StockDid you notice large share price moves in 2016? In the new 10-k, the company noted that on August 10, 2016, a total of $140,000 in debt had been converted into stock. This is great news for equity holders as their financial risk was drastically reduced as a result of these transactions. Additionally, it may explain the big swings in the share price in 2016. The following is a list of the most important debt conversions occurred followed by the date:

  • $7,000 (8/12)
  • $20,000 (8/22)
  • $22,500 (8/23)
  • $14,000 (8/30)
  • $17,400 (9/08)
  • $10,800 (9/15)

NY Times articleThe NY Times just recently discussed the video game business. We selected the most important information in the article. The most astonishing number provided is included in the following paragraph:

"Having already upended the entertainment world — global revenue for games is $20 billion higher than the music industry’s and is chasing that of the movie business — the games industry has turned its ambitions toward the lucrative world of professional video game competition, widely known as e-sports." Source

Yes, "$20 billion higher than the music industry" means that the company is being undervalued by the market. If the market potential is so big, then it is not stupid to compare the business valuation of the companies being bought out in the music and movie industry with American Leisure Holdings, Inc. We will use, for example, one of the market leaders in the industry, Warner Music Group. The company was sold to Access Industries in 2011 for $3.3 billion in cash. This is a very old company operating in a mature market. Thus, we believe that if the recently born E-Sports industry matures in the same way, the market capitalization of companies should be similar. The market cap of AMLH is less than $1 million.ConclusionThe market reacted to the new information released by the company delivering more than 100% profits to investors that bought after reading our initial piece on AMLH. The most relevant information was the annual report released as well as new announcements made by the CEO on his Facebook and Twitter account. Additionally, we highlighted that the company reduced the financial risk shareholders had in 2016. We expect that as traders get to know the company better, interest in the company may increase. Finally, we made some calculations using the numbers that were delivered by the New York Times. In our opinion, if the information delivered by the newspaper is true, the AMLH bull run is just getting started. We will be updating our subscribers as soon as we know more. For the latest updates on AMLH, sign up below!Disclosure: We have no position in AMLH and have not been compensated for this article.

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