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PC: they mention better gross margins, but other than that I can't piece an explanation together from their PRs or their accounts, which come with little explanation. I believe the figures are real though, as they have been under the eye of the auditor since the beginning of 2016.
According to their PRs:
837k : US Government storage facility
1.7m: US military base
1.77m: US Army rail maintenance
Here's a reminder of three of their recent 5-year rental contracts with the US Government:
2/4/15: $837,000
2/17/16: $1,700,000
8/5/16: $1,770,000
Total $72,000 per month. Very solid cash flow.
Here's the Ameramex timetable I expect:
9/30/2016 Audit finished? Could be a little later.
10/31/2016 Oshkosh dealership announced? Could be earlier if not dependent on audit.
11/15/2016 3Q results announced.
11/31/2016 approx: conference call.
2/28/2017 uplist to OCTQB? Could be earlier.
3/23/2017 end year 2016 results announced. Should show record net profits. I expect $2m+.
3/27/2017 approx: conference call.
Rest of 2017: continued improvement in sales and profits, based on expanding core business plus Oshkosh dealership. Share price to .10+ by end of 2017, based on:
- anticipated 2017 net profit of $3m+
- P/E of 25, reasonable for a company whose net profits are growing much faster than 25% a year.
- wider investor interest following uplisting.
With a P/E ratio of 2.9, I'd say the AMMX shareholders are already the most pessimistic on the planet. There seems to be a solid floor at .008, and the elevators only go up from here.
Born
Hang in there! Despite all Lee's obvious faults, he is solidly building up a good profitable business with a strong balance sheet. I am very sure that this will continue, and after a successful audit the SP will stabilize above one cent and he will be able to uplist. Then we will really start making money. I've been waiting for years and have a LOT of AMMX shares.
Tks Pharma, common sense is rare on this board.
The CEO has a split personality: Dr Lee who runs a small, respectable company showing excellent profit growth over the past seven years; and Mr Hamre who goes on frequent, mysterious trips to poor African countries, and nobody knows what he does there.
Private: did you miss the August 5th announcement of a $1.77m rental agreement with the US army?
All we need is
1. The completion of the audit at the end of September, a deadline which I believe they may meet, contrary to usual form. They have already made balance sheet adjustments, presumably following suggestions from the auditors, so I doubt there will be difficulties.
2. Oshkosh agreement. This may well depend on the audit. That would make sense.
3. Uplisting. It would be a cruel world if items 1 and 2 did not lift the share price over the one cent requirement.
I remain a strong, long-term holder of the shares.
I don't expect further shares to be issued at year’s end. They have the cash now to pay staff and creditors, and will be under the eye of their auditors.
...but before the CC they will be announcing 2Q16 results on 8/15.
Born: you are right. And gross revenues without any African content are growing very fast. Lee's recent remark on this:
"We are tracking (gross) revenue of $5.7 million for the first six months of 2016, a 159 percent increase when compared to $2.2 million for last year’s."
Good enough for me. When the audit is finished in September, a major drag on the stock will be removed, and I expect a very good rise in SP, just in time for Christmas.
There's quite a solid floor at .008 or just under, has been for quite a while. Always look on the bright side!
1Q 2016 net revenues were already higher than full year 2015. That's pretty good in my book.
My will already says "Never sell AMMX."
You got that right A14343.
Micham: yes the share price is depressed because of Lee's terrible habit of over-promising and under-delivering. The reasons I hold on to my large and long-held position in the company are:
1. Maybe their announced results over the past 7 years are basically accurate. If so, the company's net profits have shown high and steady growth, and the share price should be at 0.08 or more today.
2. They have announced that the audit is already under way, they have named a respectable auditing firm, and that firm has not denied it.
3. Maybe they will be appointed agents for highly-respectable manufacturers and will be able to use that connection to land large contracts in Africa.
4. Lee is by far the biggest shareholder in the company. He stands to gain more than any of us from a higher share price, and finally has the cash in hand to afford a proper audit, the only serious hurdle remaining for him to jump.
For me this means an investment with very low risk and a good chance of very high rewards.
Last year its 2Q results were announced on August 19.
It isn't just talk that the company made a bigger net profit in 1Q16 than in the whole of 2015.
Agreed. I know normal rules don't apply in this market, but by the normal logic a company with Ameramex's high and long-running rate of growth in net profits could expect a P/E ratio of 30 or so, implying an SP of 8 cents plus.
Compare 2016 with 2015:
Gross revenues first half 2015: $2.2m
Gross revenues to 5/24/2016: $5.0m
Net revenues full year 2015: $1.12m
Net revenues Q1 2016 ONLY: $1.16m
Outstanding growth in revenues and profits. Congratulations Lee!
I don't think hidden agendas. Lee is largest shareholder by far and has most to gain from rising share price. He's just a compulsive optimist, not such a bad thing in a salesman.
P/E of 2.7. Very undervalued.
I have found Marty to be always helpful, prompt and responsive.
Agreed. Note that 2007 was inflated by African hopes, 2016 deflated by dilution over the past few years.
Ameramex annual net profit/loss has improved every year since 2007:
2007 -573
2008 -571
2009 -501
2010 -322
2011 +153
2012 +276
2013 +485
2014 +801
2015 +1124
2016 1q already +1160
Couldn't be steadier, and looks like going exponential. Hang on.
Well Mike, my heart's in Chico, and my pension fund.
Here's a fact: summer began today in Chico.
Maybe you're having trouble opening the full Seeking Alpha transcript. Here is the Nigeria section:
One of the top ten richest countries in Africa, we still have conditional equipment orders from Nigeria. These orders are in limbo until the new president of Nigeria has got a good solid footing. He has been in office about 4 or 5 months and he is the next thing that has to happen to start putting the deals together in Nigeria. He has to have a Minister of Finance which has now been appointed. He is organizing the money exchanging procedures which all has to be done prior to us selling as we don't want to be paid in Nigerian Naira. We want U.S. dollars so that delays things a little bit although the buyers ready to go.
We have the two machines in inventory that he wants to buy. These two machines will take about six to eight weeks for us to get them ready to go here in California, then they will go to Houston and put on a ship. Our partner in Nigeria owns a construction company there in addition to this business and we expect to be doing some orders for construction equipment also. The equipment we shipped during 2015 to Mali is now on site and working. The same buyer has discussed a second order for another approximately $1 million. We talk weekly and he is not quite ready to place the order but I anticipate he will do so in the next few upcoming weeks.
He is looking for some large dozers and road graders in addition to the excavators and other equipment that he has already bought from us. The quote for the equipment has been provided and we speak to the management like I said on a weekly basis. Today the order has not been awarded so, we do have a competition on the project. Most, everything we do we have somebody to compete with but we believe we have a good relationship with the company and the owner. I meet with him personally every couple of months and we essentially have shipped him equipment, we have sites in for the future deals for the quality equipment we sent and the good job we did.
As previously discussed the same company was awarded the contract for low cost housing in the Ivory Coast to our knowledge request for proposals has not yet been issued. They are just organizing how many homes and where they will be located. It's in the area of 10,000 low-end homes that they are going to build that will take quite a bit of equipment if it all comes together. Regarding the crane that we discussed in past calls, that Chevron on Nigeria who's buying, we bid on the order along with other companies and today the award has not been given out. I don't know why but we are in the running with the other people that have also quoted.
When it's buyer like Chevron, even if it's Chevron of Nigeria, we are not the only American company that gets asked to bid so, that's what I can't really give you a gut feeling on although I do know people on both ends supply and buyers that we have relationships with. To get more competitive in Africa and to open the door to opportunities, more easily finance, we are putting together an agreement with a tactical vehicle manufacturer that AmeraMex will have a dealer in contract with soon, to market specific types of vehicles that we will be able to sell in the West African countries.
I will start with Nigeria. We hope to have our dealership agreement signed by sometime in May. This is important to AmeraMex as it expands not only our product line but potential customer base. As core business, a wrap up, currently our pipeline for core business contains potential U.S. business, U.S. Government proposals, International Proposals for Africa and Central America and we believe the new product line would allow us to explore additional opportunities that require military type equipment and provide a pricing edge.
One additional product that we have signed a contract to be the distributor for is called a Menzi-Muck Spider Excavator. It's a very special machine and whenever you want to see what it looks like and operates, you can look on Google and look up Menzi-Muck and there's about a dozen videos showing that machine in operation. I suggest is some of you are interested and want to know more about what we do, bring that up on Google and look at it, it's pretty impressive.
Barrence: you asked about Nigeria, not Niger, which is a different country. If you read the whole of the link I sent you, you will see a lot of information about Ameramex's ambitions in NIGERIA.
Some Ameramex Nigeria background here:
http://seekingalpha.com/article/3961045-ameramex-internationals-ammx-ceo-lee-hamre-q4-2015-results-earnings-call-transcript
Now is the time to invest in Nigeria, say entrepreneurs - CNN
https://apple.news/AzkR8tL9fSqasJPK-vJl7Qw
The TRACE report lists all shareholders with over 2%. The only obvious family name is Lee Hamre himself.
Ivory: many thanks for this series of excellent, well-informed posts.
ORCA: once again you are impugning the honesty of this company's management. Why do you own these shares?
On the ball today GT!
Brilliant!!
INXXS: I know the feeling.