Why I Really Like AMRK stock

[Recyclersteve]

I realize there are lots on this site who have no involvement with the stock market- and that’s fine.

But I want to dedicate an entire thread to A-Mark Precious Metals (Ticker: AMRK) to give it the attention I feel it deserves.

DISCLAIMER: Don’t commit money that you can’t afford to lose to this or any other stock. Expect that even strong stocks can go down 20-30% quickly, perhaps even overnight with no apparent news. In cases where corporate executives are dishonest (look up the Enron scandal if you want an example), you could lose your entire investment.

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NOTE: My original post took over an hour to write and proofread. When I hit submit, it was gone. I know I should have done baby steps til the post was ready for prime time. But I have too much going on in my life at this time and forgot about how much time had passed. Stay tuned- much more to follow!

[natsb88]

NOTE: My original post took over an hour to write and proofread. When I hit submit, it was gone. I know I should have done baby steps til the post was ready for prime time. But I have too much going on in my life at this time and forgot about how much time had passed. Stay tuned- much more to follow!

I'm in the habit of highlighting and copying a large post before clicking anything. So if the form shows up blank on the next page, I can just paste the text back in. Sometimes modern browsers will save the text if you click the back button. Sometimes not.

[Recyclersteve]

I’m just trying to do this with an iPhone as I won’t have access to a regular PC for the next 1-2 weeks. That made it a lot more challenging. With a PC, I’d just type a Word document and cut/paste it into the RC site.

[Recyclersteve]

First I want to gauge potential interest before wasting a lot of time with detailed analysis. I don’t expect commitments to buy the stock. On the other hand I don’t want someone to give me a vote of confidence without a serious desire to evaluate any stocks seriously for a potential purchase. Who would potentially benefit from this?

[Changechecker]

I read about it last time when you mentioned it had bought jm bullion. Certainly warrants more evaluation. It is on my list to follow up on. Seems to be benefitting from positive news late

[AdamsSamoa]

I did not know they were publicly traded … I do like the old 1 oz chunk bars....

I may pick up some shares... they are not too expensive and have a dividend.

[Recyclersteve]

I did not know they were publicly traded … I do like the old 1 oz chunk bars....

I may pick up some shares... they are not too expensive and have a dividend.

The dividend is not a regular recurring dividend. Instead, they paid 2 special dividends of $1.50 per share last year- one in Sept.- the other in Nov. So if regular divs are important, I’d look elsewhere.

Also, you mentioned not knowing they were publicly traded. I think there are tons of people (even coin dealers) who feel the same way.

[AdamsSamoa]

I just did a quick google search... I saw the dividend info and did not look any further.... I am still going to pick some up.

[fasteddy]

Interested for sure.

[IdahoCopper]

I put AMRK on my list of "maybe buy" dividend stocks. More info is appreciated.

Also on that list are:
Cell providers, domestic & international
Oil, producers, pipelines, tankers
Gold Miners
Banks
Muni Bonds
DeFi
A-Mark

[Recyclersteve]

Ok- here’s the deal. I don’t have access to a real computer for 1-2 weeks, so I need someone to help cut and paste info I posted on another site, namely SeekingAlpha.com.

Put in AMRK for the symbol. Go to the most recent AMRK article, which was written by Kingdom Capital on 2/1/21.

At the bottom of the article are at least 41 comments. I (Steve Moore) wrote 8 of them. If you can paste the link to that article in this thread, I’d really appreciate it. If anyone is on the SA site and wants to “Like” any posts they feel are helpful, I would appreciate the gesture. I put quite a few hours into writing the material and don’t get paid for it.

[AdamsSamoa]

just started a small position and i inserted it into my Dollar Cost Average rotation.... We will see.

[IdahoCopper]

Here is the article Recyclersteve mentions, and the comments:

https://seekingalpha.com/article/440253 ... er-squeeze

[Recyclersteve]

Here is the article Recyclersteve mentions, and the comments:

https://seekingalpha.com/article/440253 ... er-squeeze

Thanks IdahoCopper! Much appreciated.

[Recyclersteve]

In after hours tonight AMRK got at least as high as $44.00! The company announced earnings, which were solid as expected. Congrats to those who bought- including me! My daughter loves me even more now than yesterday as she played it in her retirement account.

[Recyclersteve]

AMRK finished after hours at $44.51, up $5.24 (+ 13.34%). This was on a day where the market was down sharply (2%+).
Now you can understand why I liked this one so much. Read in detail how much they actually earned and you should be impressed. That P/E ratio could still go much higher (along with the stock price) IMHO. Just be prepared to buy it more than once (so buy only a partial position to start). That way, if the stock goes DOWN on great news like this (it does happen from time to time), you can buy more shares at an even better price- perhaps tomorrow or Friday.

[Recyclersteve]

Correction- Yahoo! ended up saying that the final AMRK trade in after hours was actually $45.00, up $5.73 (14.59%) from the regular session close.

Please refrain from buying it all at one time unless you have a cast iron stomach. Even though the earnings appear to be really good and there are very few short sellers betting against the stock (per the most recent public info), the stock could still go back to the $40ish level or perhaps even mid-30’s in a somewhat more extreme situation (i.e., new bad news that comes out, etc.). Good luck to all.

[Recyclersteve]

If you are investing in the stock market and don’t know about A-Mark (AMRK), this is an investment that you need to look at. Regarding the earnings that just came out Wednesday after the close, I expected them to be excellent. Frankly, they were beyond excellent and I don’t know how to put it any other way.

The P/E ratio before the announcement was 5. Now (even after a nice move up) it is all the way DOWN TO 2 (source: Yahoo! Finance). A normal P/E is, say 15-20ish. Let’s be conservative and round the P/E up to 3 and say a fair P/E is only 12. That means the stock should quadruple from here! If this isn’t a hidden gem, then I don’t know what is?

Still, even with all that positive info, that doesn’t mean the stock will go up. If some very rich entity hates one of the owners of the company and wants to short the stock to push the price down, they could try. There is no really good way to know how low they could push the price. In other words, no matter how great an investment sounds, don’t go all in with everything you’ve got the first time you buy it. I am FULLY PREPARED for, say, a 20-30% pullback from this price level if it happens. On the other hand, it could run to $100 without even a 10% pullback. So, fasten your seatbelts. This one is looking VERY INTERESTING!

The thing that will be interesting to watch for is any kind of mainstream media coverage that may come soon. If Jim Cramer of CNBC or Goldman Sachs or another influential entity starts singing the praises of this one, that could be the nudge that it needs to get higher daily trading volumes and go to $100 or even $200 a share.

Think too about cryptocurrencies. Some were quite upset with damage done to cryptos by Elon Musk when hosting Saturday Night Live and then again by Tesla in recent days. Who could benefit? Those investing in precious metals.

I have rarely seen superlow P/E’s when a company had huge earnings that were massively inflated by proceeds of a lawsuit. That isn’t the case with A-Mark, which has been in business for decades. How long will this stock remain undiscovered? Great question!

[coppernicus]

Apparently I should have been reading this a few days ago

[Recyclersteve]

Apparently I should have been reading this a few days ago

Please read the postings above carefully. If this is less than $50 a share (or even $60), why be upset that someone else paid $30-35 a share when it could go to $100-200 a share or more.

I don't know you personally, so please don't take offense when I say this. But a young adult I know tends to have a bit of a jealous streak in her when she finds out that someone else did "better" than she did. That, if I'm reading things correctly, is destructive behavior and it makes it much harder to be happy in life.

I personally would be happy to buy something and sell it even 20% below the ultimate high price. Why? When you are selling, if there is no justification for another buyer to take your shares and have a decent chance at a profit, why should they even consider buying? I absolutely positively don't expect to get close to buying at the bottom and selling at the top. I'm truly thankful for what I end up getting- assuming it is a reasonable profit. A good friend of mine used to refer to an example of cutting the top and bottom off a piece of fruit and enjoying the juicy middle.

Also, please don't expect to buy just once and make a huge profit. If you do, you may get cocky and get absolutely annihilated the next time you try it. Have a well thought out strategy to handle just about anything without buying too much of the stock and you should do well over time.

As much fun as I've had with the stock market for decades (it is my hobby), I admit it can be quite stressful when something comes out of nowhere and catches everyone off guard. For instance, what if there were allegations of massive fraud with AMRK or if execs went to jail for something totally unexpected. Not sure exactly what I'd do at that point. Ultimately, I'd have to decide whether the stock had any real value left and proceed carefully.

Good luck to all who read this.

[Cu Penny Hoarder]

Any form of stock pumping should be discouraged on this forum.

[Recyclersteve]

Any form of stock pumping should be discouraged on this forum.

I am genuinely curious as to why you’d say that. This is a company in the business of selling silver and gold, among other things. So it is another way of investing/speculating in PM’s. There are tons of postings on PM’s on this site. Instead of having a huge investment in physical coins/bars, why not diversify and include the stock market?

I totally get that the stock market has characteristics that make it different from owning physical coins. People talk about guns and politics on this site as well. Are you suggesting those topics also be off limits?

By the way, AMRK is a U.S. company traded on a major stock exchange that has been in business for decades and is highly profitable. There are tons of publicly traded stocks that cannot match that or even come close. Also, I don’t believe in pumping thinly traded penny stocks.

A pumper, in the true definition of the word, is often paid stock as compensation for what they say. I have NEVER been compensated in stock, cash, crypto or any other way for this one or any other I’ve discussed on this site. Just wanted to clarify that. The term pumper has a pretty nasty connotation to many, me included.

I would really like a bit more of an explanation to better understand your position.

[68Camaro]

I believe that discussion of specific metal stocks are fully appropriate so I wouldn't let one opinion slow you down, as long as no promises are made.

[stas3000]

Very helpful analysis - thank you very much! And certainly, stock pumping is inappropriate although each should do his/her due diligence regardless. Thankfully, this thread is not a pump.

I'm concerned that the price got quite high -- too high? -- with several recent jumps. There may be a move down soon despite positive results and low P/E. But long term this in an interesting position to consider.

[Recyclersteve]

Zach’s has come out and assigned their HIGHEST RATING (Top 5% of 4,000 stocks covered) to AMRK.

The details are in Yahoo! Finance. Can someone post the link in this thread please? Thanks in advance.