What happened

Another day, another explosive performance from Ammo (NASDAQ:POWW).

In Wednesday trading, shares of the ammunition manufacturer are shooting up 31.4% (as of 10:50 a.m. EST). There's no actual "new" news to report today, however, so it would appear that what we're seeing today is simply a continuation of the momentum from yesterday's announcement of a quarterly sales projection.

Bullets and cartridges piled up in the form of a tank.

Image source: Getty Images.

So what

To recap, yesterday Ammo doubled down on its promise of a "nearly 500% year-over-year increase" in Q3 sales by promising a 317% increase in Q4 sales -- and a 293% increase for fiscal 2021 as a whole.

Investors are now cluing in to all the triple digits in these projections and getting pretty excited over the prospects.

Now what

Before you get too excited, though, there are a couple of things to keep in mind. First of all, Ammo stock may be approaching $7 a share today, but as recently as a year ago, Ammo was trading close to penny stock prices -- just a buck and change. And the reason investors valued Ammo stock so lowly (I assume) was that in its entire history as a public company, Ammo has never earned a profit.

That hasn't changed.

Whether selling barely $1 million worth of ammo in 2017, or $27 million-plus over the past year, Ammo still hasn't quite figured out how to make a profit from this business, and it hasn't promised to make a profit this year, either. So...caveat investor.

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