Alpine 4 Holdings Inc (OTCMKTS:ALPP) Stock Approaches $3: How far Can it Go?

Alpine 4 Holdings Inc (OTCMKTS:ALPP) is one of the biggest gainers in Monday’s trading session on hefty volume after the company announced update for Q2 2021.

Market Action

As of 9:46, ALPP stock moved up 10.30% to $2.90 with more than 343K shares, compared to its average volume of 812k shares. The stock has moved within a range of $2.5500 – 2.9000 after opening the trade at $2.62.

Major Trigger:

Alpine 4 Holdings Expects to Report Q2 2021 Revenue Growth of 54% over Q2 2020

• Alpine 4 Holdings Inc announced today that it is providing preliminary guidance for its Q2 2021 sales.  The company expects to report, for the period ending Q2 2021, sales of $14 million, which is revenue growth of approximately 54% over Q2 2020.   The company also anticipates that Q3 will grow to over $18 million.
• Kent B. Wilson, Alpine 4 CEO, had this to say: “This quarter’s success was led by A4 Manufacturing and its subsidiaries Quality Circuit Assembly, Inc. and Alternative Labs, LLC.   Both companies are firing on all cylinders, and further growth is expected for Q3 and Q4 due to the robust demand from their customer base. It is noteworthy, that Alternative Labs, LLC. and Thermal Dynamics International Inc., were acquired one month after the quarter had begun.
• It is for this reason that one month of their revenue will not be reflected in Alpine’s Q2.  Company-wide gross profit margin is also improving, with only A4 Construction Services lagging at the moment. The subsidiaries that constitute A4 Construction Services continue to face increased material shortages and costs, working against their profit margins.  We expect these margins to continue improving in Q3 and Q4 2021, normalizing in Q1 2022. 
• Additionally, Q2 2021 brought increased spending on R&D for A4 Aerospace, Inc. and will continue for the near future as we build out our G1, G2, and US-1 airframes and avionics platforms. This continued investment into R&D is driven by our anticipation of sales beginning in Q3 and Q4. I look forward to discussing Q2 further in August after we release our next 10Q.”