ALJJ - ALJ Regional Holdings

ALJ Regional Holdings

Started in 2005, this is a parent company of the following 3 subsidiaries:

• Faneuil Inc
• Floors-N-More, Carpets N' More
• Phoenix Color Corp

Fundamentals

19.21M Float, 42.32M Outstanding

Why I like them?

• QoQ & YoY Revenue Increase. This is the most important factor and it trumps all other catalysts in my opinion. 
• The only issue being their debt, but all companies have debt.
• Jess M. Ravich owns whooping 25M Shares (Direct and Indirect)
• He did sell some shares but it was at higher prices and so that's not a concern at this point and that was around 1%.

YoY and QoQ Revenue

Ownership

Recent News

https://finance.yahoo.com/news/phoenix-color-completing-20-million-210500999.html

Phoenix Color Completing its $20 Million Capital Investment Program with the Purchase of Two New Presses

https://finance.yahoo.com/news/alj-regional-holdings-inc-announces-210500318.html

ALJ recognized net revenue of $119.8 million for the three months ended December 31, 2020, an increase of $29.4 million, or 32.5%, compared to $90.5 million for the three months ended December 31, 2019. The increase was driven by new state unemployment contracts and contract implementation and production at Faneuil and increased component sales primarily related to trade at Phoenix, offset somewhat by lower volumes at Carpets. ALJ recognized net revenue of $107.3 million for the three months ended September 30, 2020.

Technicals

• Has fallen below the purple line which means there is some selling at the top, possibly because it almost quadrupled on the earnings report.
• Nearing a new support trendline and we should see a bounce soon near 1.40s
• SMA 20 is @ 1.42 and it bounced on 2/23 near that line
• Previous resistance 1.40 is the new support possibly

Potential Entry Points: 1.28 > 1.35

Stop Loss 1.25 or below 50 SMA closure

Price Targets: 1.61 > 1.75 > 1.85 > 2.05+

Daily Chart

Weekly Chart