A-Mark Precious Metals: DTC Transformation Creates Massive Runway

Kingdom Capital profile picture
Kingdom Capital
3.89K Followers

Summary

  • A-Mark has drastically transformed their business since the last time I covered them for Seeking Alpha, and the valuation has recently pulled back to extremely attractive levels.
  • Gold and Silver have not held up as inflation trades YTD, but A-Mark represents a great way to get exposure to precious metals without commodity price risk.
  • We believe A-Mark can consistently earn over $100m EBITDA annually in their new business model.
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Oselote

Since I last profiled A-Mark Precious Metals (NASDAQ:AMRK) on Seeking Alpha, they have completely transformed, generating ~$400m of EBITDA, acquiring new streams of revenue, and strengthening margins via vertical integration. The company has expanded from a low-margin precious metals wholesaler to a higher

This article was written by

Kingdom Capital profile picture
3.89K Followers
Deep value investor focused primarily on microcap stocks. Registered Investment Advisor located in Virginia.

Disclosure: I/we have a beneficial long position in the shares of AMRK either through stock ownership, options, or other derivatives. 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.

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