To The Moon

$AML3D LTD(AL3.AU)$ Where the rubber meets the road... That's when you see the real result... I have been screaming out loud about AML3D. I understand that there has been no news out for sometime since it started a new manufacturing site in US last December. When there's no contract win announcements during this period doesn't mean that nothing is going on in the background.

As we can from the chart below, the share price has been gradually correcting since the excitement from December last year. That obviously was the recent top. As could be observed, I have also been quietly adding to my initial positions during this lull period. 

As posted a couple of times, additive manufacturing is the next wave in defence. US and Europe are both going to be big in this new technology trend. In US, with Donald Trump onboard, his love for local manufacturing and cost reduction in government spending, non-traditional and additive manufacturing are the way to go. In Europe, with NATO latest commitments to increase defence spending, both $TITOMIC LTD(TTT.AU)$ and $AML3D LTD(AL3.AU)$ being Australian companies will likely benefit as a 3rd party country's manufacturer.

If we revisit the chart, two more information can be extracted.

1) It has started a new uptrend and broken through its near term resistance.

2) From RSI, its secondary chart, it has hit overbought territory.

There's another information that is not shared. Its recent volume is also rising, which means more people have taken notice.

In the latest filing last week, a senior US Navy program lead has joined its board, which means more promising contracts are perhaps in the horizon. US Navy would want oversight of its contractors especially if they are small and relatively new. As per the latest company presentation, the site visit had revealed the opportunity to triple its involvement in US Defence market by supporting not just its surface ships manufacturing, but also in missiles and submarines manufacturing.

Point 1 above with increasing volume is definitely good for AML3D. Point 2 is the only concern near term. Having said that, the uptrend is very much intact, I see good chance of its share price going from strength to strength, especially with some contract wins announcements. If they indeed materialised as expected, its recent high from last December is likely to be taken out. 

Near term pull back is definitely possible without any follow up announcements. I am not going to over-worried about these pullbacks, as they are healthy for the company share price to go the distance. I will look to add to it if correction sets in. If we don't add during company lull, when do we add? This is a big defence company in the making if it plays its cards right...

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