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Allied Motion Technologies Is Overpriced

Patrick Doyle profile picture
Patrick Doyle


  • Profits have barely budged since 2019, in spite of a huge uptick in revenue. At the same time, the capital structure has deteriorated massively.
  • In spite of this, the shares are near record valuations. When they've reached these levels previously, they have gone on to underperform. History may repeat.
  • The more an investor pays for something, the lower will be their subsequent returns. Buying at current prices sets people up for capital loss in my view.

Currency and Exchange Stock Chart for Finance and Economy Display


It's been a little over five months since I suggested that Allied Motion Technologies Inc. (NASDAQ:AMOT) was too expensive, and in that time the shares have returned about 19.6% against a gain of about 3.9% for the S&P 500. Whoops. I sometimes

A financial history of Allied Motion from 2015 to the present

Allied Motion Financials (Allied Motion investor relations)

Data by YCharts

Data by YCharts

This article was written by

Patrick Doyle profile picture
I'm a quant investment newsletter writer who marries fundamental analysis with the latest research in momentum. Over the past few years, I’ve developed a piece of software that helps me track the level of optimism and pessimism embedded in stock price. I seek to challenge the assumptions embedded in price by profitably exploiting the disconnect between what the market thinks and what is a likely outcome. I invest in those companies that have a greater than average chance of giving us all a surprise in the next few months.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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