POWW: When Tailwinds and Headwinds Collide

Asset Sales and Lawsuits

Today I have a stock that at first glance, appears to be pretty undervalued. Its net asset valuation according the company’s balance sheet makes the stock look like it has some serious potential for some upside. Sitting at $1.75 a share with what appears to be $2.88 per share’s worth of net asset value, AMMO, Inc ( POWW 0.00%↑ ) caught my eye and made me pause my research into other areas of the market. It wasn’t until closer inspection that my exuberance over this company began to subside into a more normalized and realistic set of expectations. Today I wanted to go over why POWW’s high net asset valuation doesn’t excite me quite the same way that other companies with high asset values like MLP 0.00%↑ or ALCO 0.00%↑ tend to do. I will also be exploring if POWW is still a stock worth buying into or just another business worth passing over.