Thursday, January 28, 2016 10:16:44 AM
AMMX.006.HUGE ALERT.HUGE REPORT OUT BY AN ANALYST.PLEASE READ THE WHOLE REPORT:))
THIS IS GOING TO GO BALLISTIC SOON PEOPLE..006????ARE YOU KIDDING ME??
I JUST READ THE WHOLE REPORT.VERY SOLID.AMMX IS THE BEST STOCK ON THE PLANET RIGHT NOW AT THESE PRICES.FOR A HUGE UPSIDE IN THE .02 TO .05 IMO
READ THE REPORT.WHAT PENNY STOCK BRINGS 9 MILLION IN REVENUES FOR THE YEAR 2015???AND HAS 8 PROTIFABLE Qs????THE STOCK SHOULD BE IN THE .02 MINIMUM AS I TYPE THIS.EVERYONE SHOULD READ THE REPORT.TAKE THE TIME.
THERE IS NO OTHER PENNY STOCK WITH THESE KIND OF NUMBERS TRADING SO LOW.
AmeraMex International (OTC:AMMX) – A SOLID Story – Eight Quarters of Profits and More Likely to Follow
By Admin - January 27, 2016 514 0
Summary of Our Research Findings
This report offers an analysis of AmeraMex International, Inc., which trades as AMMX on the OTC.
We believe there is a positive risk reward ratio to these shares at the current price.
AmeraMex is a heavy equipment sales, rental and leasing company, located in California, that has reported eight consecutive quarters of profitability.
The Company has developed a specialty in shipping container loading and unloading equipment serving several of the U.S. West Coast port operators.
The trend toward renting and leasing of heavy equipment continues to benefit AMMX’s business.
With a stable U.S. business, the Company is expanding internationally and has developed several very meaningful business opportunities in Western Africa. Should the necessary financing be secured, a very positive affect on revenues should result.
The Company has already preannounced a strong December 2015 quarter and provided guidance for additional growth in the 2016.
We can easily see 40% top line growth for 2016 at revenue of $13mm. Current market cap is only $5 mm yielding an attractive price-to-sales ratio for this growing and profitable company.
Over the coming weeks, we will be watching closely for news relative to the development of the Company’s African opportunities. Should the financing be secured, the price of the shares will likely rise significantly.
Executive Summary
AmeraMex International, Inc. is a Chico, California-based company that sells, rents, and leases heavy construction, logistics, mining and other types of heavy equipment to various industries. The Company purchases new equipment from manufacturers and used equipment on the open market, modifying or repairing the equipment as needed then offering it to the industry for resale, lease or rent. The Company has developed a specialty in the area of cargo container loading and unloading equipment serving U.S. West Coast port operations. AmeraMex is also an authorized distributor for several major heavy equipment manufacturers including Taylor Machine Works, Terex Heavy Equipment and Barko Hydraulics.
We believe it is particularly noteworthy that this Company has established a track record of eight consecutive profitable quarterly periods. We expect the trend to continue.
The Company’s shares trade on the over-the-counter market under the symbol AMMX. While not yet a fully reporting company with the U.S. Securities & Exchange Commission, the Company is current in its filings with the OTC Markets System, with the most recent filing in November 2015. We are expecting the Company to make an additional quarterly and year-end filing concerning results for the December 2015 period prior to the deadline of March 30, 2016.
While many companies that utilize heavy-duty equipment have historically selected to lease the equipment from banks and leasing companies, the trend has expanded and accelerated to include a very active rental market. Over the past few years, while the overall market for construction related equipment has stagnated, the marketplace for the rental of heavy equipment has continued to grow. Currently, approximately 54% of the dollar share of U.S. construction equipment is owned by rental companies, such as AmeraMex. The subsector is highly fragmented, although there are several publicly traded entities, most of which have strong operations, revenue growth, and earnings.
The trend toward renting or leasing heavy equipment is expected to continue for the foreseeable future. This is partially due to continued economic uncertainty, concerns about possible construction, mining and infrastructure spending stagnation along with the recent rise in heavy equipment pricing as federal clean air regulations have increased manufacturing costs
While AMMX has operated a solid domestic business it has not been able to significantly grow its operation within the U.S. Seeking faster growth, the Company is pursuing international expansion. Through industry contacts, management has developed several very meaningful opportunities in Western Africa, in particular Niger and Nigeria. The Niger truck opportunity could easily be valued at tens of millions of dollars over the coming years. Management, however, is still working to gain a formalized contract as project financing has yet to be finalized. The Company is working on several other opportunities in Africa. We believe it is notable that AMMX shipped an order to Mali recently, which we hope is an indicator of additional future shipments. While the African market shows promise for the Company, management is also seeking additional business in other countries, most notably within Asia.
Recent performance has been solid, although it appears some revenue recognition timing issues negatively affected the September 2015 quarter. Management has already announced very solid performance for the December 2015 quarter at over $5 million in revenues, which we believe is significant considering the first nine months of the year, produced just $4 million. Therefore, we are expecting revenue for 2015 to come in at around $9.1 million with solid gross margins and profitability. Management has also indicated it expects 2016 to be a year of additional growth.
While the numbers on the Company’s balance sheet are relatively small, we must note that the balance sheet is in rather good shape compared to most publicly traded micro caps. Management’s sound financial management of this business over the past few years is commendable.
We believe AmeraMex and its investors could be close to positive developments, which could drive the value of the shares considerably higher. Total market capitalization is under $5 million – slightly less than .5X projected 2015 revenues. We believe 40% top line growth is not unrealistic for 2016, which would yield a projected $13 million top line forecast for the year, yielding a .4X price to sales ratio against the 2016 estimate. The stock certainly seems like a bargain considering the Company’s history of profitability and its relatively strong gross margins.
While the shares are likely undervalued simply based on probable 2016 revenue growth, there is strong possibility for significant upside to this forecast should the large Niger order receive the expected financing. Such an event will likely propel 2016 revenues significantly higher and considering the margin structure of the current business and the upcoming businesses, we believe it is likely that earnings would soar propelling the price of the common shares significantly higher.
With a strong current business, very realistic possibilities for a significant international expansion, and demonstrated abilities by this executive team to profitably manage a business, we believe the shares deserve the attention of a risk adverse, small cap investors seeking superior returns.
Introduction – AmeraMex International, Inc.
AmeraMex International, Inc. is a sales, rental and leasing operation for heavy equipment, such as bulldozers, excavators, loaders, forklifts, container handlers, etc. into the logistics, mining and infrastructure construction sectors of the economy. While the Company has historically specialized in providing equipment to U.S.-based companies, international opportunities have significantly expanded the scope of the Company. The most important area of international expansion for the Company is Western Africa, which has a small, but growing agricultural, mining industry and much need for infrastructure improvement.
The Company is registered in Nevada with operations headquartered in Chico, California, located just north of Sacramento. Originally founded in 1990, a merger with an equipment company in 2006 created the operation as it is known today.
The Company trades on the OTC Markets’ Pink Sheets quotation system under the symbol AMMX. It is up to date in its reporting with the OCT Markets System, although not fully compliant with SEC reporting on Forms 10-Q and 10-K. Nevertheless, AMMX still receives a “Current Information” status with the OTC Markets System. The last quarterly report was filed on November 16, 2015, which provided disclosures and financials for the three and nine-month periods ending September 30, 2015. We believe it is likely the Company will file similar disclosures for the three and twelve month periods ending December 31, 2015 sometime before the due date of March 15, 2016.
As of the most recent filing, there were approximately 660,000,000 shares outstanding, which considering the current trading range, yields an approximate total market capitalization of just under $5 million.
Relative to AmeraMex International, there are three important distinctions that separate it from the vast majority of its OTC Markets trading peers. The first is a documented eight quarter run of profitability. It appears likely profitability was also obtained during the fourth quarter ended December 31, 2015. The second is a balance sheet that is in relatively good shape compared to most public microcap companies. Lastly, there is rather robust revenue growth with strong possibilities for this trend to continue.
AmeraMex’s Business
AmeraMex International’s primary business is the rental and leasing of heavy equipment. The Company acquires new and used equipment and then rents or leases this equipment to various construction, logistics, infrastructure, and government entities. The amount of time the customer utilizes the equipment varies from short-term rentals, based on specific construction or infrastructure projects, to longer-term rentals with companies that deploy the rented or leased equipment in a serial manner as projects are acquired and progress toward completion.
The heavy equipment purchasing, rental and leasing industry is highly fragmented, although there are four major players that account for approximately 22% of yearly revenues. The remaining 78% of the marketplace is split among hundreds of smaller operators that specialize in many different facets or subsectors of the overall marketplace. Construction and project related areas in mining, street construction machinery, off highway transportation, and logistics operations account for at least 50% of the total marketplace with the remaining 50% highly fragmented among construction, transportation, mining and other sub-sectors.
According to research firm IBIS, the United States marketplace is valued at about $35 billion per year and over the past 15 years has grown at nearly 6% per year. However, there has been some stagnation in the overall marketplace over the past few years due to a combination of the drop in construction and transportation infrastructure spending, and ongoing industry consolidation among many of the midsize market participants.
As a result, many of the smaller market participants have had to diversify operations in order to maintain viability. A list of the larger public entities that specialize in the leasing and rental of heavy construction equipment is listed as Exhibit One.
Exhibit One – Larger Publicly Traded Heavy Equipment Rental and Leasing Operations
ammx Exhibit market playersSource: Travis Brown at Seeking Alpha
Despite the industry consolidation and a general slowdown over the past few years that has been seen, the trend toward renting or leasing heavy construction equipment seems to be gaining momentum. While the near-term trend in construction spending appears to be relatively positive, many operators still have vivid memories of the recent softness in these sectors. As a result, there is still considerable hesitation to purchase equipment that may become idle if construction, mining, and other related spending again weaken. Additionally, the cost of many types of heavy-duty equipment has risen rather substantially recently as a result of new federal emission control standards. Due to these and other issues, many companies forgo purchasing and instead rent the heavy construction equipment they need to complete projects.
This trend toward renting or leasing heavy equipment has been a boon too many companies, including some of the largest operators such as United Rentals and Sunbelt Rentals both of which have seen strong revenue growth over the past few years. As is shown in Exhibit Two, as of the end of 2014, approximately 54% of the U.S. construction equipment market was represented by rental companies, with this trend expected to continue for at least the next 2 years.
Exhibit Two – Heavy Construction Equipment – Rent Vs. Buy
ammx rental market
Source: The Wall Street Journal
The rental and leasing of heavy-duty construction, logistics, and other equipment can be a highly profitable operation with several of the larger public companies commanding gross margins in excess of 40% and operating margins in the 10% to 30% range. Summary financial models for recent quarters’ operations of some of the larger public are listed in Exhibit Three.
Exhibit Three – Typical Margin Structure Within AMMX’s Marketplace
ammx exhibit 2 other compnaies
Source: Travis Brown at Seeking Alpha
Specialty Areas for AmeraMex International
The Company is an authorized dealer for several major equipment manufacturers including, Taylor Machine Works, Terex Heavy Equipment and Barko Hydraulics.
Taylor Specializes in lift trucks, such as heavy-duty forklifts, reach stackers and container handlers, which are primarily targeted at shipping container on loading and offloading. AmeraMex International has seen considerable success in the markets related to the on-loading and off-loading of shipping containers from ships coming in and going out of U.S. ports, particularly those located on the West Coast. Exhibit Four shows a Taylor Machine Works reach stacker, which is typical of the type of equipment used to move and stack shipping containers.
Exhibit Four – Typical Type of Equipment Leased by AmeraMex
taylor ReachStackers2
Source: Taylor Machine Works, LLC
Terex is one of the worldwide leading manufacturers of heavy-duty equipment, such as backhoes, loaders, and excavators that are designed to move materials in a variety of mining, construction and road building applications. Barko Hydraulics provides a variety of specialized loaders and tractors primarily for the use in the forest tree and scrap handling industries.
In addition to these brands, the management of the Company keeps close tabs on heavy construction related equipment that may be for sale. When equipment can be identified as being available and can purchased at a reasonable price, the Company will acquire the equipment, make necessary repairs, and then sell, rent or lease that equipment to companies that have a project that requires such a unit. The Company is then able to utilize the gross margins earned through the rental business in order to purchase additional used pieces of equipment or newly manufactured equipment for additional sale, rent or lease.
International Expansion
AmeraMex International is rapidly expanding into new markets through international partnerships and is aggressively searching for potential acquisition candidates, particularly those related to potential international operation expansion.
AMMX has signed a Memorandum of Agreement from the African country of Niger relating to a large order of trucks that will be used for various infrastructure projects in that country. Company management has been working on a financing package with Ecobank Group, which is the leading pan African bank with operations in 36 countries across Africa. Ecobank is well known for providing wholesale, retail, investment, and construction/infrastructure related financing for many projects across Africa.
While the total scope of the Niger project could encompass over 3,000 vehicles, with a gross of value approximately $300 million over a three-year period, it appears the first stage will be for approximately 250 trucks, which could be valued, according to our calculations, in excess of $20 million.
While the Niger deal is still in play, progress has been slow. However, AmeraMex International’s management updated investors November 20, 2015 that its believes prospects for closing this business are still good and that the U.S. based funding for the project is still in place.
There are at least two other potential projects within Niger and several others developing in neighboring Nigeria. In particular, relative to Nigeria, the Company is working on an agreement with a vehicle manufacturer that will give the Company the right to market specific types of vehicles into Nigeria and other African countries. While the agreement is still being negotiated, we believe these opportunities are representative of only a few of the potential deals this AMMX could close over the coming months.
While Niger and Mali are still extremely poor countries with very low per capita GDP, there is still considerable infrastructure growth taking place. Please see Exhibit Five for a map of the region.
Exhibit Five – West African Focus for AmeraMex International Expansion
ammx west africa map
Source: Google Maps
Niger’s economy, while still small, is growing at approximately 7% per year with no letup in sight. Particularly interesting in Niger are plans to expand mining operations, which will likely require increased spending on heavy-duty equipment.
There is also significant change taking place in neighboring Mali, which is also experiencing meaningful GDP growth. The central government has made a commitment to increase structure spending and there is a growing mining sector developing.
While both Niger and Mali still have very small economies, the situation in Nigeria is very different. The Nigerian economy has enjoyed sustained economic growth for more than a decade with annual real GDP increasing by about 7% per year over this period. While many consider the Nigerian economy to be primarily petroleum based, this is not the case as it has been the non-oil sector that has been the main driver of growth over the past ten years. With a highly the developed banking sector, the largest population in Africa and a relatively stable centralized government, Nigeria could hold strong growth opportunities for AmeraMex International.
Recent Wins by AmeraMex International
In late December 2015, AmeraMex International announced it completed shipments on orders totaling $741,000. The larger of these two orders, which accounted of $575,000 in revenue, is of particular interest because it was a considerably sized international order, which pushed the Company above its December quarter goal of $5 million in revenue. It appears the order was for an operation in the African country of Mali. We believe this is certainly good news as it shows that the Company’s international expansion strategy is gaining traction
Additionally, during December 2015, the Company announced it had completed shipment on an order valued at just under $1,000,000 for large capacity forklifts for the U.S. Army.
Recently Quarterly Performance and the Future Projections
We believe it is highly significant that AmeraMex International has experienced eight consecutive quarters of profitability – it something that is quite rare for publicly traded microcap companies. It also appears the Company will again report robust performance for the December 2015 quarterly period. In a press release from late December 2015, management indicated it had exceeded its $5 million revenue goal for the quarter. Based on historic margins, this level of revenue should place the Company squarely into profitability.
The September quarter was relatively weak due to several slippages in expected shipments. For the quarter, AmeraMex International reported $1.7 million in revenue compared to $2.2 million for the same quarter during 2014. Nevertheless, AmeraMex International was able to report relatively strong gross margins and net income of approximately $343,000.
Producing $5 million in the December 2015 period should yield revenues for full year 2015 of approximately $9 million. Based on historical margins for the first nine months of 2015, we believe full year 2015 net income will likely be in the area approximately $1.0 million. Revenue in the $9 million range for full year 2015 would represent approximately 23% top-line growth – not huge, but very respectable.
Please see Exhibit Six for the September Quarter results on a three and nine month basis.
Exhibit Six – Recent Quarter Income Statement
Screen Shot 2016-01-19 at 12.34.35 AM
Source: AmeraMex International, Inc.
While producing $5 million during the December quarter would be significant, considering the first nine months of the year produced only $4 million, we believe it will be the guidance the Company provides for the March quarter that will be the true barometer of the direction of the Company and the share price moving forward. Management indicated on November 20, 2015 that they believe 2016 will be another year of growth for the Company.
The wildcard for this Company is the African growth. In the past few months, several shipments have already occurred. Any acceleration of African deals would likely result in a revenue spike during the first half of 2016, probably attracting a lot of attention to shares of AMMX.
If the Company is able to moderately increase its U.S.-based business while accelerating shipments to Africa, AmeraMex International investors could see some very strong growth developing. Implementation of the Niger truck deal would certainly propel the Company into a strong top line growth rate for 2016 and likely well into 2017. With the Company already operating profitability, a sharp increase in revenues would likely also spike net income and the price of the common shares.
The Balance Sheet
AmeraMex International’s balance sheet, while not laden with significant assets, is nevertheless in relatively good shape when compared to other small publicly traded micro-caps.
As of the end of the most recently reported period, the Company had approximately $2.5 million of current assets and total assets of approximately $3.3 million with a relatively small $1.5 million of current liabilities. There is also approximately $2 million of long-term liabilities, yielding total liabilities of approximately $3.5 million. The most recent balance sheet is listed below as Exhibit Seven.
Exhibit Seven – September 20, 2015 Balance Sheet.
Screen Shot 2016-01-19 at 12.37.22 AMSource: AmeraMex International, Inc.
Management Team
CEO – Lee Hamre
Lee Hamre is president and CEO of AmeraMex International, and also serves as a director on the company’s board. Prior to assuming his current role with AmeraMex, Mr. Hamre was president and CEO of Hamre Equipment Company, which he launched in 1989 with partner, Warren Murphy. He has 30 plus years of experience in the heavy equipment and heavy haul business. Hamre began working at his father’s heavy equipment company, while in high school. There he learned every aspect of the business from the ground up and years later moved into sales and sales management, and opened a branch office which he managed. As a young entrepreneur, Hamre started a small business while in college, which would later have 20 employees.
During his business career, Hamre has held positions in sales and sales management, branch operations, and as a successful business owner and operator. Over the years Mr. Hamre has expanded his dealings in the heavy equipment marketing field by completing sales in several foreign countries, such as Russia, Indonesia, Columbia, Honduras, Guatemala, Mexico, and Nigeria. During these years Mr. Hamre learned the business of exporting used heavy equipment to customers around the world. Mr. Hamre is a member of the U.S. Small Business Administration Roundtable, which meets quarterly with Senators and Congressman in Washington, D.C. to discuss the impact of proposals and bills on small business. Mr. Hamre served in the United States Navy Reserves from 1968 through 1974. Hamre earned a B.A. degree in communications and public relations from Chico State College in Chico, California.
Mike Maloney – COO and Director
Mike Maloney is the Director of Public Safety, Education and Training for Butte College located in Oroville, California. He recently retired as Chief of Police of Chico, California after a 32-year career in law enforcement. Parallel with his career in law enforcement, Maloney served on the boards of several non-profit organizations and is an instructor at Butte College Police Academy. Maloney has an Associate Degree in Social Science from Butte College; a BA in Management from St. Mary’s College and has completed graduate work in Business Management at the University of Virginia. As a law enforcement professional, he has completed several executive and leadership development programs at the FBI National Academy and the California Law Enforcement Command College. Maloney has extensive experience in strategic planning, management of multi-million dollar budgets and the development of non-profit funds. His interaction with government official officials at the city and state levels and his team-building management approach has contributed to his continued success. Maloney is utilizing his skills and professional experience as a member of the Board of Directors in bolstering the operations and strategic development of AmeraMex International.
Tracie Hannick – CFO
Ms. Hannick has been working with AmeraMex International as a tax and financial consultant since 2010 and brings over 15 years of financial experience to the company. Tracie specializes in tax and accounting needs with emphasis on designing, transitioning and implementing new accounting systems to streamline the accounting and tax reporting process. Before joining AmeraMex Tracie was President of Bean Counting Firm for 11 years. Prior, Hannick worked in the non- profit sector for seven years and currently serves on the board of two non-profit corporations.
Hannick is responsible for all financial aspects of the company including accounting oversight, financial reporting and analysis and budgeting. She resides in Chico, Calif. and holds a B.S. in Business Organization and Human Resources, California State University, Sonoma, California.
Predications for the Future
We see no reason to predict any significant negative shift in AmeraMex business.
The management team has already exhibited its ability to produce profitable revenues and it appears business is on an upswing.
Management has already indicated that the December quarter, which we expect to be reported by March 30, 2016, yielded approximately $5 million in revenue. This should put the Company squarely, once again, into profitability and yield approximately $9 million in revenues for full year 2015.
The management team seems confident in the expected growth in international revenues. We believe it is noteworthy that some African related revenues were reported recently and it appears such revenues will expand over the near-term. Should the Niger related truck order receive the pending financing with shipments taking place, the entire investment scenario of this Company will be dramatically altered. This is certainly one of the areas investors should be watching very closely.
Management should be congratulated on its financial management of this business. Investors in AMMX will soon likely be looking at nine consecutive quarters of profitability, which is certainly commendable. Additionally, management has done a good job on managing its balance sheet. While the numbers are relatively small, the mere fact that current assets exceed current liabilities is something that most small companies are unable to maintain. Also there is $2 million of long-term debt, but we believe the level is certainly manageable considering the revenue base and the strong margins this company is able to produce.
With approximately 660,000,000 outstanding shares market capitalization is only approximately $5 million. With any indication that additional African business will close and that the U.S. revenue base will at least be maintained at current levels, investors should seriously consider purchasing the shares, assuming such an investment meets his or her tolerance for risk.
In summary, we are rather impressed by this little company, its ability to maintain profitability, the relatively good shape of its balance sheet, and most of all, the strong prospects for significant revenue growth due to international expansion.
Disclosures
We do not own these shares and have no plans to acquire, purchase, sell, trade or transfer these shares in any manner. Any opinions we may offer about the Company are solely our own, and are made in reliance upon our rights under the First Amendment to the U.S. Constitution, and are provided solely for the general opinionated discussion of our readers. Our opinions should not be considered to be complete, precise, accurate, or current investment advice. Such information and the opinions expressed are subject to change without notice. Separate from the factual content of our articles about the Company, we may from time to time include our own opinions about the Company, its business, markets and opportunities.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. We did not make an independent investigation or inquiry as to the accuracy of any information published by the Company, or other firms. The author relied solely upon information published by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results.
This report or article is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed. This publication does not take into account the investment objectives, financial situation, or particular needs of any particular person. This publication does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. We are not registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority.
ALL INFORMATION IN THIS REPORT IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLE CONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
Information, opinions, or recommendations contained in this report are submitted solely for informational purposes. The information used in statements of fact made has been obtained from sources considered reliable, but we neither guarantee nor represent their completeness or accuracy. Such information and the opinions expressed are subject to change without notice. This research report is not intended as an offering or a solicitation of any offer to buy or sell the securities mentioned or discussed. The firm, its principles, or the assigned analyst may or may not own or trade shares, options, or warrants of this covered Company. We have received compensation of $2,000 to cover out distribution and production of this report. If additional compensation is received, future version of the report will be updated to reflect this compensation. Globe Small Cap Research, has not in the past received compensation for the production of previous reports. The party responsible for the production of this report owns no common stock and/or warrants in the subject Company, in any way, shape, or form. The views expressed in this research Company report accurately reflect the analyst’s personal views about any or all of the subject securities or issuers referred to in this Company report, and no part of the analyst’s or the firm’s compensation was, or will be directly or indirectly related to the specific recommendation or views expressed in this report. Opinions expressed herein reflect the opinion of Globe Small Cap Research and are subject to change without notice. We claim no responsibility to update the information contained in this report. Investors should consider the suitability of any particular investment based on their ability to accept certain levels of risk, and should not rely solely on this report for information pertaining to the Company covered. We can be contracted at info@globesmallcap.com.
THIS IS GOING TO GO BALLISTIC SOON PEOPLE..006????ARE YOU KIDDING ME??
I JUST READ THE WHOLE REPORT.VERY SOLID.AMMX IS THE BEST STOCK ON THE PLANET RIGHT NOW AT THESE PRICES.FOR A HUGE UPSIDE IN THE .02 TO .05 IMO
READ THE REPORT.WHAT PENNY STOCK BRINGS 9 MILLION IN REVENUES FOR THE YEAR 2015???AND HAS 8 PROTIFABLE Qs????THE STOCK SHOULD BE IN THE .02 MINIMUM AS I TYPE THIS.EVERYONE SHOULD READ THE REPORT.TAKE THE TIME.
THERE IS NO OTHER PENNY STOCK WITH THESE KIND OF NUMBERS TRADING SO LOW.
AmeraMex International (OTC:AMMX) – A SOLID Story – Eight Quarters of Profits and More Likely to Follow
By Admin - January 27, 2016 514 0
Summary of Our Research Findings
This report offers an analysis of AmeraMex International, Inc., which trades as AMMX on the OTC.
We believe there is a positive risk reward ratio to these shares at the current price.
AmeraMex is a heavy equipment sales, rental and leasing company, located in California, that has reported eight consecutive quarters of profitability.
The Company has developed a specialty in shipping container loading and unloading equipment serving several of the U.S. West Coast port operators.
The trend toward renting and leasing of heavy equipment continues to benefit AMMX’s business.
With a stable U.S. business, the Company is expanding internationally and has developed several very meaningful business opportunities in Western Africa. Should the necessary financing be secured, a very positive affect on revenues should result.
The Company has already preannounced a strong December 2015 quarter and provided guidance for additional growth in the 2016.
We can easily see 40% top line growth for 2016 at revenue of $13mm. Current market cap is only $5 mm yielding an attractive price-to-sales ratio for this growing and profitable company.
Over the coming weeks, we will be watching closely for news relative to the development of the Company’s African opportunities. Should the financing be secured, the price of the shares will likely rise significantly.
Executive Summary
AmeraMex International, Inc. is a Chico, California-based company that sells, rents, and leases heavy construction, logistics, mining and other types of heavy equipment to various industries. The Company purchases new equipment from manufacturers and used equipment on the open market, modifying or repairing the equipment as needed then offering it to the industry for resale, lease or rent. The Company has developed a specialty in the area of cargo container loading and unloading equipment serving U.S. West Coast port operations. AmeraMex is also an authorized distributor for several major heavy equipment manufacturers including Taylor Machine Works, Terex Heavy Equipment and Barko Hydraulics.
We believe it is particularly noteworthy that this Company has established a track record of eight consecutive profitable quarterly periods. We expect the trend to continue.
The Company’s shares trade on the over-the-counter market under the symbol AMMX. While not yet a fully reporting company with the U.S. Securities & Exchange Commission, the Company is current in its filings with the OTC Markets System, with the most recent filing in November 2015. We are expecting the Company to make an additional quarterly and year-end filing concerning results for the December 2015 period prior to the deadline of March 30, 2016.
While many companies that utilize heavy-duty equipment have historically selected to lease the equipment from banks and leasing companies, the trend has expanded and accelerated to include a very active rental market. Over the past few years, while the overall market for construction related equipment has stagnated, the marketplace for the rental of heavy equipment has continued to grow. Currently, approximately 54% of the dollar share of U.S. construction equipment is owned by rental companies, such as AmeraMex. The subsector is highly fragmented, although there are several publicly traded entities, most of which have strong operations, revenue growth, and earnings.
The trend toward renting or leasing heavy equipment is expected to continue for the foreseeable future. This is partially due to continued economic uncertainty, concerns about possible construction, mining and infrastructure spending stagnation along with the recent rise in heavy equipment pricing as federal clean air regulations have increased manufacturing costs
While AMMX has operated a solid domestic business it has not been able to significantly grow its operation within the U.S. Seeking faster growth, the Company is pursuing international expansion. Through industry contacts, management has developed several very meaningful opportunities in Western Africa, in particular Niger and Nigeria. The Niger truck opportunity could easily be valued at tens of millions of dollars over the coming years. Management, however, is still working to gain a formalized contract as project financing has yet to be finalized. The Company is working on several other opportunities in Africa. We believe it is notable that AMMX shipped an order to Mali recently, which we hope is an indicator of additional future shipments. While the African market shows promise for the Company, management is also seeking additional business in other countries, most notably within Asia.
Recent performance has been solid, although it appears some revenue recognition timing issues negatively affected the September 2015 quarter. Management has already announced very solid performance for the December 2015 quarter at over $5 million in revenues, which we believe is significant considering the first nine months of the year, produced just $4 million. Therefore, we are expecting revenue for 2015 to come in at around $9.1 million with solid gross margins and profitability. Management has also indicated it expects 2016 to be a year of additional growth.
While the numbers on the Company’s balance sheet are relatively small, we must note that the balance sheet is in rather good shape compared to most publicly traded micro caps. Management’s sound financial management of this business over the past few years is commendable.
We believe AmeraMex and its investors could be close to positive developments, which could drive the value of the shares considerably higher. Total market capitalization is under $5 million – slightly less than .5X projected 2015 revenues. We believe 40% top line growth is not unrealistic for 2016, which would yield a projected $13 million top line forecast for the year, yielding a .4X price to sales ratio against the 2016 estimate. The stock certainly seems like a bargain considering the Company’s history of profitability and its relatively strong gross margins.
While the shares are likely undervalued simply based on probable 2016 revenue growth, there is strong possibility for significant upside to this forecast should the large Niger order receive the expected financing. Such an event will likely propel 2016 revenues significantly higher and considering the margin structure of the current business and the upcoming businesses, we believe it is likely that earnings would soar propelling the price of the common shares significantly higher.
With a strong current business, very realistic possibilities for a significant international expansion, and demonstrated abilities by this executive team to profitably manage a business, we believe the shares deserve the attention of a risk adverse, small cap investors seeking superior returns.
Introduction – AmeraMex International, Inc.
AmeraMex International, Inc. is a sales, rental and leasing operation for heavy equipment, such as bulldozers, excavators, loaders, forklifts, container handlers, etc. into the logistics, mining and infrastructure construction sectors of the economy. While the Company has historically specialized in providing equipment to U.S.-based companies, international opportunities have significantly expanded the scope of the Company. The most important area of international expansion for the Company is Western Africa, which has a small, but growing agricultural, mining industry and much need for infrastructure improvement.
The Company is registered in Nevada with operations headquartered in Chico, California, located just north of Sacramento. Originally founded in 1990, a merger with an equipment company in 2006 created the operation as it is known today.
The Company trades on the OTC Markets’ Pink Sheets quotation system under the symbol AMMX. It is up to date in its reporting with the OCT Markets System, although not fully compliant with SEC reporting on Forms 10-Q and 10-K. Nevertheless, AMMX still receives a “Current Information” status with the OTC Markets System. The last quarterly report was filed on November 16, 2015, which provided disclosures and financials for the three and nine-month periods ending September 30, 2015. We believe it is likely the Company will file similar disclosures for the three and twelve month periods ending December 31, 2015 sometime before the due date of March 15, 2016.
As of the most recent filing, there were approximately 660,000,000 shares outstanding, which considering the current trading range, yields an approximate total market capitalization of just under $5 million.
Relative to AmeraMex International, there are three important distinctions that separate it from the vast majority of its OTC Markets trading peers. The first is a documented eight quarter run of profitability. It appears likely profitability was also obtained during the fourth quarter ended December 31, 2015. The second is a balance sheet that is in relatively good shape compared to most public microcap companies. Lastly, there is rather robust revenue growth with strong possibilities for this trend to continue.
AmeraMex’s Business
AmeraMex International’s primary business is the rental and leasing of heavy equipment. The Company acquires new and used equipment and then rents or leases this equipment to various construction, logistics, infrastructure, and government entities. The amount of time the customer utilizes the equipment varies from short-term rentals, based on specific construction or infrastructure projects, to longer-term rentals with companies that deploy the rented or leased equipment in a serial manner as projects are acquired and progress toward completion.
The heavy equipment purchasing, rental and leasing industry is highly fragmented, although there are four major players that account for approximately 22% of yearly revenues. The remaining 78% of the marketplace is split among hundreds of smaller operators that specialize in many different facets or subsectors of the overall marketplace. Construction and project related areas in mining, street construction machinery, off highway transportation, and logistics operations account for at least 50% of the total marketplace with the remaining 50% highly fragmented among construction, transportation, mining and other sub-sectors.
According to research firm IBIS, the United States marketplace is valued at about $35 billion per year and over the past 15 years has grown at nearly 6% per year. However, there has been some stagnation in the overall marketplace over the past few years due to a combination of the drop in construction and transportation infrastructure spending, and ongoing industry consolidation among many of the midsize market participants.
As a result, many of the smaller market participants have had to diversify operations in order to maintain viability. A list of the larger public entities that specialize in the leasing and rental of heavy construction equipment is listed as Exhibit One.
Exhibit One – Larger Publicly Traded Heavy Equipment Rental and Leasing Operations
ammx Exhibit market playersSource: Travis Brown at Seeking Alpha
Despite the industry consolidation and a general slowdown over the past few years that has been seen, the trend toward renting or leasing heavy construction equipment seems to be gaining momentum. While the near-term trend in construction spending appears to be relatively positive, many operators still have vivid memories of the recent softness in these sectors. As a result, there is still considerable hesitation to purchase equipment that may become idle if construction, mining, and other related spending again weaken. Additionally, the cost of many types of heavy-duty equipment has risen rather substantially recently as a result of new federal emission control standards. Due to these and other issues, many companies forgo purchasing and instead rent the heavy construction equipment they need to complete projects.
This trend toward renting or leasing heavy equipment has been a boon too many companies, including some of the largest operators such as United Rentals and Sunbelt Rentals both of which have seen strong revenue growth over the past few years. As is shown in Exhibit Two, as of the end of 2014, approximately 54% of the U.S. construction equipment market was represented by rental companies, with this trend expected to continue for at least the next 2 years.
Exhibit Two – Heavy Construction Equipment – Rent Vs. Buy
ammx rental market
Source: The Wall Street Journal
The rental and leasing of heavy-duty construction, logistics, and other equipment can be a highly profitable operation with several of the larger public companies commanding gross margins in excess of 40% and operating margins in the 10% to 30% range. Summary financial models for recent quarters’ operations of some of the larger public are listed in Exhibit Three.
Exhibit Three – Typical Margin Structure Within AMMX’s Marketplace
ammx exhibit 2 other compnaies
Source: Travis Brown at Seeking Alpha
Specialty Areas for AmeraMex International
The Company is an authorized dealer for several major equipment manufacturers including, Taylor Machine Works, Terex Heavy Equipment and Barko Hydraulics.
Taylor Specializes in lift trucks, such as heavy-duty forklifts, reach stackers and container handlers, which are primarily targeted at shipping container on loading and offloading. AmeraMex International has seen considerable success in the markets related to the on-loading and off-loading of shipping containers from ships coming in and going out of U.S. ports, particularly those located on the West Coast. Exhibit Four shows a Taylor Machine Works reach stacker, which is typical of the type of equipment used to move and stack shipping containers.
Exhibit Four – Typical Type of Equipment Leased by AmeraMex
taylor ReachStackers2
Source: Taylor Machine Works, LLC
Terex is one of the worldwide leading manufacturers of heavy-duty equipment, such as backhoes, loaders, and excavators that are designed to move materials in a variety of mining, construction and road building applications. Barko Hydraulics provides a variety of specialized loaders and tractors primarily for the use in the forest tree and scrap handling industries.
In addition to these brands, the management of the Company keeps close tabs on heavy construction related equipment that may be for sale. When equipment can be identified as being available and can purchased at a reasonable price, the Company will acquire the equipment, make necessary repairs, and then sell, rent or lease that equipment to companies that have a project that requires such a unit. The Company is then able to utilize the gross margins earned through the rental business in order to purchase additional used pieces of equipment or newly manufactured equipment for additional sale, rent or lease.
International Expansion
AmeraMex International is rapidly expanding into new markets through international partnerships and is aggressively searching for potential acquisition candidates, particularly those related to potential international operation expansion.
AMMX has signed a Memorandum of Agreement from the African country of Niger relating to a large order of trucks that will be used for various infrastructure projects in that country. Company management has been working on a financing package with Ecobank Group, which is the leading pan African bank with operations in 36 countries across Africa. Ecobank is well known for providing wholesale, retail, investment, and construction/infrastructure related financing for many projects across Africa.
While the total scope of the Niger project could encompass over 3,000 vehicles, with a gross of value approximately $300 million over a three-year period, it appears the first stage will be for approximately 250 trucks, which could be valued, according to our calculations, in excess of $20 million.
While the Niger deal is still in play, progress has been slow. However, AmeraMex International’s management updated investors November 20, 2015 that its believes prospects for closing this business are still good and that the U.S. based funding for the project is still in place.
There are at least two other potential projects within Niger and several others developing in neighboring Nigeria. In particular, relative to Nigeria, the Company is working on an agreement with a vehicle manufacturer that will give the Company the right to market specific types of vehicles into Nigeria and other African countries. While the agreement is still being negotiated, we believe these opportunities are representative of only a few of the potential deals this AMMX could close over the coming months.
While Niger and Mali are still extremely poor countries with very low per capita GDP, there is still considerable infrastructure growth taking place. Please see Exhibit Five for a map of the region.
Exhibit Five – West African Focus for AmeraMex International Expansion
ammx west africa map
Source: Google Maps
Niger’s economy, while still small, is growing at approximately 7% per year with no letup in sight. Particularly interesting in Niger are plans to expand mining operations, which will likely require increased spending on heavy-duty equipment.
There is also significant change taking place in neighboring Mali, which is also experiencing meaningful GDP growth. The central government has made a commitment to increase structure spending and there is a growing mining sector developing.
While both Niger and Mali still have very small economies, the situation in Nigeria is very different. The Nigerian economy has enjoyed sustained economic growth for more than a decade with annual real GDP increasing by about 7% per year over this period. While many consider the Nigerian economy to be primarily petroleum based, this is not the case as it has been the non-oil sector that has been the main driver of growth over the past ten years. With a highly the developed banking sector, the largest population in Africa and a relatively stable centralized government, Nigeria could hold strong growth opportunities for AmeraMex International.
Recent Wins by AmeraMex International
In late December 2015, AmeraMex International announced it completed shipments on orders totaling $741,000. The larger of these two orders, which accounted of $575,000 in revenue, is of particular interest because it was a considerably sized international order, which pushed the Company above its December quarter goal of $5 million in revenue. It appears the order was for an operation in the African country of Mali. We believe this is certainly good news as it shows that the Company’s international expansion strategy is gaining traction
Additionally, during December 2015, the Company announced it had completed shipment on an order valued at just under $1,000,000 for large capacity forklifts for the U.S. Army.
Recently Quarterly Performance and the Future Projections
We believe it is highly significant that AmeraMex International has experienced eight consecutive quarters of profitability – it something that is quite rare for publicly traded microcap companies. It also appears the Company will again report robust performance for the December 2015 quarterly period. In a press release from late December 2015, management indicated it had exceeded its $5 million revenue goal for the quarter. Based on historic margins, this level of revenue should place the Company squarely into profitability.
The September quarter was relatively weak due to several slippages in expected shipments. For the quarter, AmeraMex International reported $1.7 million in revenue compared to $2.2 million for the same quarter during 2014. Nevertheless, AmeraMex International was able to report relatively strong gross margins and net income of approximately $343,000.
Producing $5 million in the December 2015 period should yield revenues for full year 2015 of approximately $9 million. Based on historical margins for the first nine months of 2015, we believe full year 2015 net income will likely be in the area approximately $1.0 million. Revenue in the $9 million range for full year 2015 would represent approximately 23% top-line growth – not huge, but very respectable.
Please see Exhibit Six for the September Quarter results on a three and nine month basis.
Exhibit Six – Recent Quarter Income Statement
Screen Shot 2016-01-19 at 12.34.35 AM
Source: AmeraMex International, Inc.
While producing $5 million during the December quarter would be significant, considering the first nine months of the year produced only $4 million, we believe it will be the guidance the Company provides for the March quarter that will be the true barometer of the direction of the Company and the share price moving forward. Management indicated on November 20, 2015 that they believe 2016 will be another year of growth for the Company.
The wildcard for this Company is the African growth. In the past few months, several shipments have already occurred. Any acceleration of African deals would likely result in a revenue spike during the first half of 2016, probably attracting a lot of attention to shares of AMMX.
If the Company is able to moderately increase its U.S.-based business while accelerating shipments to Africa, AmeraMex International investors could see some very strong growth developing. Implementation of the Niger truck deal would certainly propel the Company into a strong top line growth rate for 2016 and likely well into 2017. With the Company already operating profitability, a sharp increase in revenues would likely also spike net income and the price of the common shares.
The Balance Sheet
AmeraMex International’s balance sheet, while not laden with significant assets, is nevertheless in relatively good shape when compared to other small publicly traded micro-caps.
As of the end of the most recently reported period, the Company had approximately $2.5 million of current assets and total assets of approximately $3.3 million with a relatively small $1.5 million of current liabilities. There is also approximately $2 million of long-term liabilities, yielding total liabilities of approximately $3.5 million. The most recent balance sheet is listed below as Exhibit Seven.
Exhibit Seven – September 20, 2015 Balance Sheet.
Screen Shot 2016-01-19 at 12.37.22 AMSource: AmeraMex International, Inc.
Management Team
CEO – Lee Hamre
Lee Hamre is president and CEO of AmeraMex International, and also serves as a director on the company’s board. Prior to assuming his current role with AmeraMex, Mr. Hamre was president and CEO of Hamre Equipment Company, which he launched in 1989 with partner, Warren Murphy. He has 30 plus years of experience in the heavy equipment and heavy haul business. Hamre began working at his father’s heavy equipment company, while in high school. There he learned every aspect of the business from the ground up and years later moved into sales and sales management, and opened a branch office which he managed. As a young entrepreneur, Hamre started a small business while in college, which would later have 20 employees.
During his business career, Hamre has held positions in sales and sales management, branch operations, and as a successful business owner and operator. Over the years Mr. Hamre has expanded his dealings in the heavy equipment marketing field by completing sales in several foreign countries, such as Russia, Indonesia, Columbia, Honduras, Guatemala, Mexico, and Nigeria. During these years Mr. Hamre learned the business of exporting used heavy equipment to customers around the world. Mr. Hamre is a member of the U.S. Small Business Administration Roundtable, which meets quarterly with Senators and Congressman in Washington, D.C. to discuss the impact of proposals and bills on small business. Mr. Hamre served in the United States Navy Reserves from 1968 through 1974. Hamre earned a B.A. degree in communications and public relations from Chico State College in Chico, California.
Mike Maloney – COO and Director
Mike Maloney is the Director of Public Safety, Education and Training for Butte College located in Oroville, California. He recently retired as Chief of Police of Chico, California after a 32-year career in law enforcement. Parallel with his career in law enforcement, Maloney served on the boards of several non-profit organizations and is an instructor at Butte College Police Academy. Maloney has an Associate Degree in Social Science from Butte College; a BA in Management from St. Mary’s College and has completed graduate work in Business Management at the University of Virginia. As a law enforcement professional, he has completed several executive and leadership development programs at the FBI National Academy and the California Law Enforcement Command College. Maloney has extensive experience in strategic planning, management of multi-million dollar budgets and the development of non-profit funds. His interaction with government official officials at the city and state levels and his team-building management approach has contributed to his continued success. Maloney is utilizing his skills and professional experience as a member of the Board of Directors in bolstering the operations and strategic development of AmeraMex International.
Tracie Hannick – CFO
Ms. Hannick has been working with AmeraMex International as a tax and financial consultant since 2010 and brings over 15 years of financial experience to the company. Tracie specializes in tax and accounting needs with emphasis on designing, transitioning and implementing new accounting systems to streamline the accounting and tax reporting process. Before joining AmeraMex Tracie was President of Bean Counting Firm for 11 years. Prior, Hannick worked in the non- profit sector for seven years and currently serves on the board of two non-profit corporations.
Hannick is responsible for all financial aspects of the company including accounting oversight, financial reporting and analysis and budgeting. She resides in Chico, Calif. and holds a B.S. in Business Organization and Human Resources, California State University, Sonoma, California.
Predications for the Future
We see no reason to predict any significant negative shift in AmeraMex business.
The management team has already exhibited its ability to produce profitable revenues and it appears business is on an upswing.
Management has already indicated that the December quarter, which we expect to be reported by March 30, 2016, yielded approximately $5 million in revenue. This should put the Company squarely, once again, into profitability and yield approximately $9 million in revenues for full year 2015.
The management team seems confident in the expected growth in international revenues. We believe it is noteworthy that some African related revenues were reported recently and it appears such revenues will expand over the near-term. Should the Niger related truck order receive the pending financing with shipments taking place, the entire investment scenario of this Company will be dramatically altered. This is certainly one of the areas investors should be watching very closely.
Management should be congratulated on its financial management of this business. Investors in AMMX will soon likely be looking at nine consecutive quarters of profitability, which is certainly commendable. Additionally, management has done a good job on managing its balance sheet. While the numbers are relatively small, the mere fact that current assets exceed current liabilities is something that most small companies are unable to maintain. Also there is $2 million of long-term debt, but we believe the level is certainly manageable considering the revenue base and the strong margins this company is able to produce.
With approximately 660,000,000 outstanding shares market capitalization is only approximately $5 million. With any indication that additional African business will close and that the U.S. revenue base will at least be maintained at current levels, investors should seriously consider purchasing the shares, assuming such an investment meets his or her tolerance for risk.
In summary, we are rather impressed by this little company, its ability to maintain profitability, the relatively good shape of its balance sheet, and most of all, the strong prospects for significant revenue growth due to international expansion.
Disclosures
We do not own these shares and have no plans to acquire, purchase, sell, trade or transfer these shares in any manner. Any opinions we may offer about the Company are solely our own, and are made in reliance upon our rights under the First Amendment to the U.S. Constitution, and are provided solely for the general opinionated discussion of our readers. Our opinions should not be considered to be complete, precise, accurate, or current investment advice. Such information and the opinions expressed are subject to change without notice. Separate from the factual content of our articles about the Company, we may from time to time include our own opinions about the Company, its business, markets and opportunities.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. We did not make an independent investigation or inquiry as to the accuracy of any information published by the Company, or other firms. The author relied solely upon information published by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results.
This report or article is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed. This publication does not take into account the investment objectives, financial situation, or particular needs of any particular person. This publication does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. We are not registered as a securities broker-dealer or an investment adviser with FINRA, the U.S. Securities and Exchange Commission or with any state securities regulatory authority.
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Information, opinions, or recommendations contained in this report are submitted solely for informational purposes. The information used in statements of fact made has been obtained from sources considered reliable, but we neither guarantee nor represent their completeness or accuracy. Such information and the opinions expressed are subject to change without notice. This research report is not intended as an offering or a solicitation of any offer to buy or sell the securities mentioned or discussed. The firm, its principles, or the assigned analyst may or may not own or trade shares, options, or warrants of this covered Company. We have received compensation of $2,000 to cover out distribution and production of this report. If additional compensation is received, future version of the report will be updated to reflect this compensation. Globe Small Cap Research, has not in the past received compensation for the production of previous reports. The party responsible for the production of this report owns no common stock and/or warrants in the subject Company, in any way, shape, or form. The views expressed in this research Company report accurately reflect the analyst’s personal views about any or all of the subject securities or issuers referred to in this Company report, and no part of the analyst’s or the firm’s compensation was, or will be directly or indirectly related to the specific recommendation or views expressed in this report. Opinions expressed herein reflect the opinion of Globe Small Cap Research and are subject to change without notice. We claim no responsibility to update the information contained in this report. Investors should consider the suitability of any particular investment based on their ability to accept certain levels of risk, and should not rely solely on this report for information pertaining to the Company covered. We can be contracted at info@globesmallcap.com.
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