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After approving an 8:1 reverse split, the retail favorite Alpine 4 Holdings, Inc. (NASDAQ: ALPP) stock jumped more than 11% as it regained compliance with Nasdaq’s requirements. As of now, ALPP stock has a low float of only 22 million and high short interest with no more available shares to borrow, which should make its 100,000 investors happy as it may be prone to a short squeeze. That, coupled with ALPP’s subsidiaries’ expansion in the UAE, and the possibility of non-dilutive funding to one of its subsidiaries, ALPP stock is one to watch closely
ALPP Stock News
After the 8:1 reverse split ALPP was left with 22 million shares, ALPP stock seems to be in a good spot for a short squeeze. The information technology company announced the 8:1 reverse split on May 12 to bring the Company into compliance with the NASDAQ’s $1 minimum bid price requirement. After the reverse split, ALPP stock jumped 11% before settling again.
The interest ALPP stock gained after the reverse split may trigger a short squeeze, as the stock has a high short interest rate of 35% and a 100% utilization rate. If it maintains a steady increase in its trading price as it gains more investors’ interest by the day, ALPP stock may soar as short sellers might be forced to cover their short positions.
Earlier this month, ALPP gained first-of-its-kind three-part license approval with the Dubai Civil Aviation Authority (DCAA) for Global Autonomous Corporation (GAC), a subsidiary of ALPP, to deploy the company’s “Autonomous Mesh Fulfillment Network” in Dubai, UAE. The three-part license will enable GAC to install its mesh kiosk system, fly its drones in the airspace above Dubai for the delivery of packages, and expand its service offering to other partners. Furthermore, Elecjet Power Cells, another subsidiary of ALPP, will provide the solid-state batteries to GAC’s mesh kiosk system.
As Dubai is working towards its smart and sustainable transport network infrastructure, releasing its driverless bus in 2022, and the Roads and Transports Authority in Dubai just finished the trial operation of the ‘First Autonomous Electric Abra’. Many investors speculate that there will be non-dilutive funding to GAC in the near future to implement its “Autonomous Mesh Fulfillment Network” as Dubai takes an interest in the autonomous space.
ALPP Stock Financials
In its 2022 annual report, ALPP’s assets increased 8% YoY from $136 million to $145 million, and its cash and cash equivalents decreased almost 30% YoY from $3.7 million to $2.6 million. ALPP’s total liabilities increased 19% YoY from $63 million to $75 million.
Revenue also increased 103% from $51 million to $104 million. Operating losses decreased nearly 54% YoY from $22 million to $10 million, which amounted to a net loss of $12.8 million – a 36% decrease YoY.
@LunarLander22 is excited over ALPP’s run post the reverse split.
@eliant_capitalm is bullish on ALPP’s chances to run thanks to its low float.
ALPP stock’s trend is neutral with the stock trading in a sideways channel between $1.97 and $2.64. Looking at the indicators the stock is trading below the 200 MA, a bearish indication, and is trading above the 21 and 50 MAs, which are bullish indications, while the MACD is approaching a bearish crossover.
As for the fundamentals, ALPP just underwent a reverse split that, coupled with the stock’s high short interest rate, indicates that a short squeeze may occur. With the possibility of a short squeeze the $2.27 support may prove to be a good entry point as ALPP stock may soar as short sellers might be forced to cover their short positions.
ALPP Stock Forecast
After regaining compliance with Nasdaq’s continuous trading requirements, ALPP seems to have all the requirements to be a stock to watch right now. With the expansion of its subsidiaries GAC and Elecjet in the UAE, speculation about future funding, and ALPP stock being prone to a short squeeze, there is a lot to like about ALPP.
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