Coverage Initiated on Ameritek Ventures, Analyst Says, Time to Buy

Ameritek Ventures (ATVK – $1.61) aims to become a leading manufacturer of high-quality optical fiber preforms for sale to the global telecommunications industry.

Society is experiencing increasing amounts of data and information being placed into the hands of consumers. Smart phones, 5G, high speed internet, 4K video deliver more information than ever to the users. Home automation, vehicles, security systems are being connected to the internet and sharing information at increasing rates.

The preferred highway to transport video, voice and data are networks connected by optical fiber. Expanded data requirements drive the unprecedented growth of the optical fiber industry. This growth in the optical fiber market is limited by the supply of optical fiber. Ameritek Ventures’ goal is to address this deficit.

In the first 4 to 5 years in production Ameritek aims to capture 5% of that underserved market. This represents revenues of $20 million by year two, growing to $50 million by year four with respective EBITDA of 35% and 40% in the United States alone.

The Company’s brand new design and technology hub in southwest Virginia will help execute its sustained growth and emergence strategy as a provider of high quality optical fiber preforms for the rapidly expanding Fiber Optic Cable market that in the past has been dominated by firms like Corning Incorporated, Shin-Etsu Chemical Co. Ltd., Prysmian SpA, Jiangsu Fasten Co. Ltd and Fujikura Ltd.

Ameritek’s management team has extensive experience in the development and improvement of existing machines and system and high volume manufacturing. That has enabled it to put the right process engineers together with the right equipment engineers to design the optimal system for manufacturing optical fiber preforms.

We initiate coverage of Ameritek Ventures with a buy recommendation and a price target of $2.77, which is 72% above today’s stock price.

Download the second quarter 2018 Ameritek Ventures Company Report. Download Advice: BuyPrice Target: $2.77Latest Company Report (pdf)
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