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ADMA Biologics: Sell-Off Provides Buying Opportunity Ahead Of Projected Growth

Apr. 07, 2021 10:13 PM ETADMA Biologics, Inc. (ADMA)34 Comments


  • ADMA Biologics recently reported a mixed Q4/2020 earnings with a slight miss on EPS and a slight beat on revenue. Consequently, ADMA has been under substantial selling pressure.
  • The ongoing pandemic has disrupted the industry; however, ADMA was able to report record revenue and expects to report quarter-over-quarter revenue growth.
  • ADMA has updated their BioCenter construction guidance from constructing 5-10 facilities by 2024 to 10+ facilities by 2024. In addition, the company believes they will be profitable by Q1 of 2024.
  • I have been adding aggressively during this sell-off in anticipation that my current ADMA strategy will pay off. I discuss my strategy and my long-term plan.
Blood cells
Photo by Pixelimage/E+ via Getty Images

ADMA Biologics (NASDAQ:ADMA) recently reported their Q4/2020 earnings with a slight miss on EPS and a slight beat on revenue. Despite the record revenue and strengthened balance sheet, the market punished ADMA in the subsequent trading days and is

This article was written by

Biologics profile picture

Biologics is a full-time healthcare investor who developed a passion for biotech and life saving therapies after working in the medical field for years. His trade focus is around innovative companies developing breakthrough therapies and/or pharmaceuticals with catalysts for potential acquisitions.

He is the leader of the investing group Compounding Healthcare. Features of the group include: Several model healthcare portfolios, a weekly newsletter, a daily watchlist, and chat for dialogue and questions. Learn more.

Analyst’s Disclosure: I am/we are long ADMA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (34)

Biologics profile picture
Solid report... not surprised
@Biologics Why is Grossman so cryptic about selling out? Can't he just avoid the topic, or does every earnings call have to have such suspense?
Biologics profile picture
Looking to reapply those spike profits soon. Just one more quick plunge to retest and I'll get aggressive. Anyone else do the same?
@Biologics i wish i could say so
D.Graves profile picture
@Biologics I have not purchased back the shares i have sold, trying to decide to buy before earnings or wait until after.

do wish i did sell my whole position on the spike.
Biologics profile picture
@D.Graves I threw some lunch money at it yesterday. The whole sector is getting beat up with the vaccine patent announcement.
I hope it’s a buy and not a trap to lose even more money.
Think Long Term profile picture
definitely a great buy now, after FDA approval...its a shame to see a stock get manipulated down like this on great news. But hey, cheaper shares for everyone..
sbrncra profile picture
@Think Long Term the whole mkt is down, (buy the company not the market and averaging down and up are good investment tools to use for both buying and selling), but yes be aware of the trend!
Biologics profile picture
Had to book some profits here... I got rules.
D.Graves profile picture
@Biologics I also sold 30% of my position for a nice profit.
Biologics profile picture
@D.Graves I believe one must have a systematic approach in these small-cap biotechs. Banking 20%, 30%...100% should not be frowned upon.
D.Graves profile picture
Sold May 21sT $3.00 calls on the rest of my position, if it gets called I will be happy, if not I lowered m cost, still will be happy.

Usually these jumps in price do not last, been in and out of this stock a few times over the years
D.Graves profile picture
Good news this morning

The FDA has approved ADMA Biologics Inc's (NASDAQ: ADMA) expanded manufacturing process, enabling fractionation and purification of a 4,400-liter plasma pool to manufacture Intravenous Immune Globulin (IVIG).
The 4,400-liter IVIG plasma pool scale for BIVIGAM will allow ADMA to expand its manufacturing plant's total processing capacity from 400,000 liters to an anticipated peak throughput of up to 600,000 liters.

Tempted to sell on the news, but i am holding.
@D.Graves Grossman's ATM just got stuffed with cash.
sbrncra profile picture
@Coolflippers true, they needed the cash, sold but nibbled today, like to buy dips on companies that execute. bought $PINS yesterday ah
sbrncra profile picture

$Cha Ching$
Biologics profile picture
Interesting premarket move
Biologics profile picture
Solid move today.
D.Graves profile picture
@Biologics Hope it lasts, I have been purchasing shares on the recent downturn in price, only time will tell.
blessed.are.the.brave profile picture
where there is life, there is hope...
gosh all these buying opportunities
D.Graves profile picture
Had a good till cancel buy order in to add to my position at $1.69, it was executed today, if it keeps going lower i will purchase more.

A couple of more years and we will see if ADMA is going in the right direction, i have bought and sold this company a couple of times and have also done well with selling call options in the past, when the price rises, right now i am accumulating and holding.
wwmeinc profile picture
$PULM only down ~95% in the last 5 yrs.....$ADMA at ~76% is slowing 'catching up'....sadly. glta

FormerARC profile picture
"ongoing IVIG shortage in the United States and IVIG continues to remain on the FDA drug shortage list. Therefore, any additional product being made by ADMA should be quickly consumed by the market" - is this still the case though?! I didn't like hearing from Adam on Q4 call that they are planning to hire more sales people so they can build out sales organization, and reach out to more targets. if it's a deficit, and it sells like crack, why the need invest more into sales org? and, when Adam says that we want to keep reserves in inventory so that we never run out - could that be an excuse for some inventory moving slower than it should have had?
@FormerARC i listened to that cc twice on one of my runs and noticed how rosy everything sounded
FormerARC profile picture
@Coolflippers that's how he sounds on every call.....yet not as much progress last couple of years compare to how he sounds. Listen for the points I mentioned - they are there
Biologics profile picture
@FormerARC fair assessment and the company claims they will see substantial growth this year that would support their commercial expansion efforts.
Would you please please please please stop talking
Rycote Manor profile picture
0.20 share in four years is not worth waiting for.
astute pathways profile picture
Dont fool yourself..This stock is dead money for another 2 years
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