My Stock of the Week is ADMA Biologics (ADMA). ADMA develops and manufactures specialty plasma-based biologics for the treatment and prevention of infectious diseases.
The company operates ten plasma collection facilities that collect human-source plasma for further manufacturing in the US. It is now self-sufficient in producing the plasma it needs to produce BIVIGAM for the treatment of primary Humoral Immunodeficiency and ASCENIV, an intravenous Immunoglobulin product. The company is looking to expand its commercial product portfolio and streamline its manufacturing.
ADMA is now turning cash flow and EPS positive. Management has been steadily raising its revenue and EPS estimates. It is currently estimated that the company will have revenue of over $330 million versus $258 million in 2023, which is an increase of 27%. EPS is estimated to be $0.30 in 2024 and $0.50 in 2025. Given management’s history, there is a good likelihood that these numbers will slowly increase.
ADMA is a situation where the company is just starting to ramp up profitability, which is often the sweet spot for buyers who want mature biotechnology exposure with less risk.
Technically, the stock has been in a strong uptrend since the market bottom in October 2023. It has been testing highs and has strong support and accumulation. As always, we will not chase the stock on Monday morning but will look to aggressively trade it as it develops. We will look to ramp up the size of the position on pullbacks.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing no positions in ADMA. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
