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I understand AMMX trying to venture into other industries like forestry equipment and military equipment to expand their reach and revenue, but these ventures have NEVER panned out.
Correct me if I'm wrong - but in all the years I've owned this stock, the core business - used equipment - is the only thing that has ever generated revenue for Ameramex.
Its got to be hard (if not impossible) to break into these industries and resell a brand that's already being resold by other players who are entrenched and established in those industries - including the brands themselves.
Seems to me that if the Ameramex brass and sales reps would just focus all of their time and energy on selling their core business, they would be much more successful as a company. Get the millions upon millions coming in from your core business until you can afford to gamble on some new sales rep expanding you into these industries - but keep the focus on what you do best. You are good at it.
What do I know though? Just some thoughts.
AMERAMEX INTERNATIONAL (AMMX) Shorts Lowered By 97.35%
Found this random little tidbit that posted yesterday:
https://hinewulm.com/2019/01/21/lindsell-train-ltd-increased-ebay-ebay-position-by-55-69-million-ameramex-international-ammx-shorts-lowered-by-97-35/
Well-intentioned lies are still lies AMMX
I do not understand how Lee can make so many unfulfilled claims and promises. This is not Marty. Its not the CFO. Its Lee.
The man runs a profitable business. That's amazing and I applaud him for it, but people buy and sell stocks on your claims and promises just as much as they do on your profitability and Lee has a HORRIBLE track record of fulfilling the claims and promises he makes - whether they are made personally on a conference call or in PR statements he approves.
This audit should be done multiple times over by now based on his statements. Sales to African countries should have been what? over a billion dollars by now based on Lee's claims. He's maybe sold a tractor or two over there.
As I've said before, they have a good business model. They are profitable and they have reputable contracts with the government and other entities. That's enough to build a good stock - but you guys are destroying this stock with false claim after false claim and broken promise after broken promise.
If you guys can't fix this, you don't need to be uplisted. You will be sued out of business with the number of false promises you make.
Dear Mods,
I appreciate all you guys do to prop up this stock.
Just a thought for you: the top headline that people see when they come to this page is dated May 4, 2015 and its about an event that never materialized into revenue. It might be more helpful to the stock if people saw more recent profitability news or SEC audit news or something. Please don't take this as a criticism. Its just a thought.
That's going to be my favorite quote of the week, "99% of OTC doesnt even have a PE because they have no 'E'"
Plus you make a great point. Based on the success of this company (Niger pie-in-the-sky PR withstanding), this should not be a penny stock company. There are NASDAQ listed companies who don't perform this well.
Looking forward to the SEC Audit to legitimize this stock. If they stay profitable, that audit could be a very big deal to shareholders.
This is the kind of press release that will build solid and stable stock value in this company. Well done Mr. Hamre and/or your current advisors.
I hope we never hear about Africa or solar deals and any other pie-in-the-sky ventures again unless there is a check sitting on Mr. Hamre desk on its way to the bank.
The core business for this company and its profit levels are extremely strong. The SEC audit and subsequent listing will blow this stock up.
Even if the Niger deal is not dead...
its an albatross around the neck of this stock. Look at the comments. Everybody is setting value for this stock based on whether they believe optimistically that the Niger deal might still happen or pessimistically that the Niger deal is dead, was PR'd ineptly, or worse that it was a farce inline with what appears to be a long series of suspiciously failed African deals. The low stock price obviously is represented by the pessimistic opinions.
Either way - this board should consider the Niger deal unlikely at best and move on with discussing and promoting the good things that Ammx is doing which are many. Until then, this stock price will continue to suffer in the short and long term from the stain of a Niger deal that has never lived up to any of its PR.
If the Niger deal pops, then so much the better. Let's move on and let it surprise us while we attract investors with better material than a failed deal ineptly represented by the company as imminent and all but certain.
Niger References on Summary Outdated
I'd like to ask the mods of this board to consider reworking the summary information and headlines about AmeraMex.
At some point this company (and stock) needs to rebuild its reputation on things like the US military contracts and their ever growing core business. If there is any hope for the stock price to grow, the information about this company (its PR and the PR on this board) needs to focus on what they are doing right and stop focusing on their failed promises of deals with African governments.
If it is not already reasonable to conclude that the Niger deal is dead, it is safe to say its highly unlikely at this point and needs to became a minor footnote and not the main focus of the company summary on this board.
You guys do a great job. I just wanted to point out the need to change focus. Thanks.
No PR is better than speculation PR
Most of the PR and conference call information released by this company is speculative. They talk more about deals that might happen than they do about real business - which is a shame because their real business can carry this stalk on its own.
But when they release PR after PR and conference call after conference call full of speculation on business that never happens or always has to be explained for delays, the stock price has to go down because people lose faith and interest.
Fact-based PR's will stabilize this stock and increase it. Don't remind us to focus on the core business when your speculative Niger deal is floundering Mr. Hamre. If you focus on the facts of your core business in your PR's, everybody else will.
Hide the speculative deals until you get a contract - please - for the sake of all our investments in your company. It will work. You have a good business. Please quit talking about the fake business that doesn't really exist yet (no matter how amazing it might be) and focus on the good, real business until the amazing things happen.
Please accept my deepest apologies.
Apparently I was a fool to assume incorrectly that the ONLY truck deal that Niger's Ministry of Transport has had in the works for the past 3 years had nothing to do with the PR coming out of Ameramex.
Ameramex PR said that Niger's Ministry of Transport wants to purchase 3,000 trucks. Niger's Ministry of Transport publishes to the world that they want to buy 3,000 trucks and these are not related? How often does a poor country purchase 3,000 trucks?
Niger's Ministry of Transport supposedly sent representatives with Ameramex to China to kick some tires. This same Ministry of Transport is CURRENTLY in the market to buy 3,000 trucks and it does not want to purchase any of these trucks from Ameramex?
It has taken Niger 3 years to scrape together enough financial backing to purchase 5,000 vehicles for their fleet renewal and Ameramex now wants me to believe they have a secret, unannounced plan to buy 3,000 more trucks from Ameramex for no known reason.
I'm so sorry for being duped. It won't happen again with this company.
It should be a recent article
As of today, its the 11th news article on the Societé (Company) page on the Le Sahel news site. http://www.lesahel.org/index.php/societe
The problem is Le Sahel (www.lesahel.org) doesn't date their articles. Dumbest thing I can think of for a "news" organization to do - but that's what they do.
I usually wait to find corroborating stories on other news sites that have current dates but there haven't been any so far and this article was on their current listing of news articles so I felt confident it was recent. I'll continue to watch for somebody re-posting the story with a current date to confirm.
Niger's Single Window for Vehicle Purchases is Now Funded
Looks like all the pieces are falling into place for the vehicle purchases to start flowing.
Source: http://www.google.com/translate_c?langpair=fr|en&u=http://www.lesahel.org/index.php/societe/item/8527-partenariat-entre-la-banque-atlantique-du-niger-et-la-soci%C3%A9t%C3%A9-nig%C3%A9rienne-de-logistique-automobile--plus-de-quatre-4-milliards-pour-la-mise-en-%C5%93uvre-du-guichet-unique-automobile-du-niger
Supporting Info:
Single Window - http://www.unece.org/fileadmin/DAM/trade/ctied/ctied7/ece_trade_324e.pdf
SONILOGA (entity implementing the Single Window for Niger): http://soniloga.ne/index.html
Partnership between the Niger Atlantic Bank and the Nigerian Society of Automotive Logistics: more than four (4) billion for the implementation of the Single Window Automobile du Niger
The Minister of Transport, Mr. Saley Saidou chaired last Friday in Niamey, the partnership signing ceremony between the Atlantic Bank of Niger (BAN) and the Nigerian Society of Automotive Logistics (SONILOGA) for an amount of four billion twenty five million (4,025 million) CFA francs. This partnership is on the implementation of the Single Window Automobile du Niger (GUAN).
On this occasion, the Minister of Transport said that the partnership signing ceremony reassures under the feasibility and implementation of project. "The cost of this project is a variable to start operations in a better manner. This partnership reflects the will of SONILOGA promoter to innovate and we encourage it. Our thanks go to the Niger Atlantic Bank and the African Solidarity Fund that allowed SONILOGA to have the fund of more than four (4) billion for the implementation of the Single Window Automobile du Niger "added Saley Saidou.
For his part, the Director General of the Atlantic Bank of Niger, Mrs Nana Ango Aissa said that through this funding, the Atlantic Bank Group and specifically the Atlantic Bank of Niger confirms optimizes the dynamism of Nigerian economy and particularly in the field of transport. Ms. Nana Ango Aissa, has also noted that the Niger Atlantic Bank has a strong interest in the cell OF Supports initiatives Public-Private Partnership (CAPPP), especially for lines that are consistent with the objectives of the Economic Development Program and Social (PDES).
For her, the momentum observed in recent years in the field of transport confirmed the viability of this industry in Niger. Thus, in the medium term, the Bank provides SONILOGA of the loan for the completion of the Single Window that will take over the vehicle flow from Gaya and Torodi, in addition to contributing to simplify of vehicles of operations in Niger. "The Group Banque Atlantique Group member Banque Centrale Populaire, through this investment reaffirms its commitment to support economic operators in general and those of the transport sector in particular, to play their role as the engine of development and growth. Rest assured that the Atlantic Bank will spare no effort to support all economic operators under the Public Private Partnership "assured the DG Atlantic Niger.
For the Deputy Director General of SONILOGA Mr. Saadou Moukaila, this ceremony is a major event in the life of his society. After the signing of the concession contract for the single window Automobile between the State of Niger and SONILOGA August 12, 2014, the ceremony that day, just spend another important step in the implementation of the GUAN. Thus, with the notification of the service order 15 August 2014, several important milestones were achieved in the implementation of the GUAN, namely the establishment of GUAN mastery of work team by order N 102 / MT / SG / 01 December 2014 the identification and provision of sites that host platforms GUAN, conducting technical studies and implementation of environmental and social impact studies. Also, the work of masters team GUAN worked for the effective implementation GUAN through thematic workshops on procedures for administrative and technical formalities contributing to the clearance, registration and collection of taxes and GUAN various rights.
As the Director General of the African Solidarity Fund (FSA), Mr. Sedjro Yaovi, he emphasized in his speech the pleasure of signing a new security agreement in favor of the Nigerian banking system and especially of the bank Atlantic Niger. He firstly reaffirmed the commitment of African Solidarity Fund to support the efforts of the Nigerian government and the private sector in the process of setting up infrastructures that meet the challenges of our time and the needs of population. On the other hand, Mr. Sedjro Yaovi recalled that this commitment is in line with the FSA's mission is to facilitate the economic development of member countries by acting as a catalyst for financial systems to enable such , states and public and private enterprises, access to credit to finance productive investment projects and facilitating the mobilization of local savings.
"With the guarantee of FSA, an amount of two thousand four hundred and thirty nine (2,439) million FCFA SONILOGA the company has leveraged almost $ 4.025 billion FCFA to finance the
creation of project, construction, operation, maintenance and servicing infrastructure Bank One Automotive Niger. The creation of the Single Window Automobile du Niger intended to modernize the management of the sector of the Vehicle Import Niger and optimize the mobilization of state revenues generated by this sector, "he added. He also noted that the establishment of the Single Window project in Niger Automobile seems viable, due to the increasing of imported vehicles, population growth and the political will to increase tax and quasi-tax revenues. Samira Sabu
Not sure how to interpret it yet.
Its impossible to tell if the 297 vehicles purchased already under the "Law on Investment Code" were purchased in the past and are already on the streets or if they might be part of a deal to be announced by AMMX.
On the other hand, it does say that the purchase of 814 vehicles has been waiting on the "establishment of a Single Window" which I am hoping is what Lee has been helping to establish because that would mean instant purchase applications ready to begin processing. For Single Window definition see: http://www.unece.org/fileadmin/DAM/trade/ctied/ctied7/ece_trade_324e.pdf
However, the article is unclear as to whether the Single Window has been setup or is still "pending ... establishment".
And then there appear to be 13 GIE's (Economic Interest Groups - I believe) who are ready to buy 600 vehicles. I can't tell from the article whether they get to skip the Single Window process somehow or if Saley Saidou is simply pointing out that, in addition to the 819, there are 600 other vehicles ready to be purchased under the Single Window.
They are certainly not talking about 3000 vehicles at this time. Having said that, talk of 1,400 to 1,700 vehicles ready to be purchased now is nothing to be disappointed about.
I just hope this means we are very close and that we don't have to wait another year for more pieces to fall into place.
New Article - More Details on Sonibank Financing
Source: http://www.google.com/translate_c?langpair=fr|en&u=http://www.lesahel.org/index.php/component/k2/item/8528-signature-de-la-convention-de-partenariat-sonibank-minist%C3%A8re-des-transports--faciliter-aux-transporteurs-lachat-de-v%C3%A9hicules-neufs
Signing the partnership agreement 'Sonibank Department of Transportation' ': Facilitate carriers buy new vehicles
The Department of Transportation and Sonibank signed last Friday a partnership agreement to facilitate carriers purchase new vehicles. It is the Minister of Transport, Mr. Saley Saidou and the Director General of the Sonibank who have signed the document of agreement at a ceremony held in the boardroom of the NSSF building in the presence of the Minister of Equipment, the Minister Responsible for Industrial Development, the representative of the Delegation of the European Union and the representative of the French Development Agency (AFD).
At the start of the ceremony, a minute of silence was observed in memory of the Deputy Director of the Sonibank, who died last week. In his speech, the Minister of Transport, Mr. Saley Saidou thanked the EU for its support in the design and implementation of the fleet renewal system of public transport vehicles. He also thanked the Sonibank who agreed to put in place an appropriate mechanism for funding the benefit of carriers of Niger.
According to Mr. Saley saidou is to specifically address the challenges of the age of the public transport fleet of freight and the affected public passenger transport, the Government is firmly committed to a policy of reform and modernization of the transport sector to ensure greater competitiveness of the economy. Indeed, he recalls, the average age of tractors is estimated at 23 years, that of semi-trailers to 29 and that of trucks to 25 years. "This aging fleet is due to traffic accidents, increase in transportation costs and pollution source. In addition, the road transport sub-sector remains characterized by the existence of small-carriers operating a three vehicles, poorly supervised and evolving in an informal economy and whose access to bank credit is very limited, "said the Minister Saley Saidou.
It is in this context that the Department of Transportation has implemented since 2013 a Renewal Project of the public transport fleet with the support of the Institutional support to the 10th EDF road program. This proposed renewal of the fleet of public transport, is targeted in the Declaration of General Policy of the Prime Minister, the Economic and Social Development Plan and National Transport Strategy. It is also the main measure of Community policies against overload practices of heavy vehicles and for the preservation of the country's road assets.
Also, the Law on Investment Code of the Republic of Niger adopted in April 2014, has been targeted as the main instrument for funding for the renewal of the public transport fleet in Niger. This code provides for measures total exemption from customs duties (DD) and value added tax (VAT) including the acquisition of public transport of goods to new, up to at least five (5) trucks, and parts in a proportion of 20% of the value of each truck. These exemption measures also apply in the context of the acquisition of public passenger transport in new condition, up to ten (10) as well as parts in a proportion of 10% of the value of each bus.
"The overall objective is to improve the competitiveness of road transport activities of goods and hydrocarbons, and the quality of services for passenger transport. Already, several carriers have enjoyed the benefits of code for which more than 297 transport vehicles were purchased "said the Minister of Transport. He noted that, pending the establishment of the Single Window, several applications for approval to the benefit of the Investment Code were registered at the Ministry of Industrial Development for the acquisition of more than 814 vehicles transport of goods and travelers.
On the other hand, for the continuation of the implementation of all planned activities, several draft texts were developed for the sustainable financing of the project. In addition, the professionalization of carriers and consolidation of carriers craftsmen GIE were privileged. According to the Minister of Transport, it was recorded to date, creating more than 13 GIE transport who have expressed a need for more than 600 vehicles and applications for vehicle procurement continue to be recorded at the project management unit.
Also, Mr. Saley Saidou explained that as part of the research project financing, business dealings with local banks in order to obtain their support by granting loans to preferential rates and longer terms included culminated in the signing of agreements with other banks. "For my part, I can assure you that the government is firmly committed to the research beneficial partnership for the establishment of appropriate funding mechanisms of the renewal of the public transport fleet in Niger" a-t- he said before calling the private sector and financial institutions room for more funding and much more suitable conditions, the acquisition of public transport of new vehicles.
For his part, the Director General said that Sonibank 'by agreeing to support the State in its car fleet renewal policy, the institution is in its mission and is doing his job. "We had to manage several such lines of credit. We assist the State in the financing of the economy and you can count on us for any other agreement and of any type whatsoever "he added. Samira Sabou
Same News - Smaller Article
Source: http://www.google.com/translate_c?langpair=fr|en&u=http://news.aniamey.com/h/44479.html
Auto fleet renewal agreement public transport in Niger
Published Friday, April 10, 2015 | Nigerienne News Agency
Niamey-The Ministry of Transport and the Company Nigerian banks (SONIBANK), carried out on Thursday in a signing agreement to purchase all new vehicles has is it official sources in Niamey. The agreement thus enters As part of the implementation of the renewal device auto public transport fleet in Niger. '' By agreeing to support the State in this operation, we are right in our job bank '', left heard the Director-General of the Sonibank Mr. Souley Oumarou. The Minister of Transport, Saley Saidou said the signing of this agreement by limiting and antiquated national parks of public transport vehicles moving goods and passengers at stations public. AIO / AMC / DMM / ANP / April 2015
Interesting News from Niger Today...
This might be our deal folks.
Source: http://www.google.com/translate_c?langpair=fr|en&u=http://french.china.org.cn/foreign/txt/2015-04/10/content_35290928.htm
Niger: fleet renewal for a more competitive economy
By: | Keywords: Niger , company
French.china.org.cn | Updated 10-04-2015
As part of the implementation of the fleet renewal system of public transport in Niger, which began last January, the government has Niamey Thursday the signing of an agreement to purchase new vehicles.
The Convention on the operation was signed between the Nigerian Minister of Transport, Saley Saidou and the Director General of the Nigerian Society of banks (SONIBANK) Souley Oumarou, as part of a partnership between the two institutions.
The Nigerian fleet renewal project initiated in 2013 by the Ministry of Transport with the institutional support of the 10th EDF road program, the result of a finding of the age of the vehicle transport of goods and the park used to transport traveling public.
The objective is to improve the competitiveness of road transport activities of goods and hydrocarbons, and the quality of services for passenger transport.
In Niger, according to Mr. Saidou, "the average age of tractors is estimated at 23 years, the trailers to 29 and that of trucks to 25 years."
"The aging fleet is due to traffic accidents, increased transportation costs and source of pollution," he said.
Niger is a landlocked country whose nearest port is Cotonou (Benin), which is more than 1000 km, will be recalled.
Excerpt from recent interview with Niger Minister of Transport
Source: http://www.google.com/translate_c?langpair=fr|en&u=http://www.lesahel.org/index.php/component/k2/item/7971-m-saidou-saley-ministre-des-transports--depuis-linstallation-des-autorit%C3%A9s-de-la-7%C3%A8me-r%C3%A9publique-le-transport-et-le-trafic-a%C3%A9riens-connaissent-une-am%C3%A9lioration-significative
It is, Minister, that the Nigerian fleet leaves much to desire to ensure the conditions for road safety. It is for this reason also that you have found it useful to proceed with the renewal of the Nigerian fleet. Where are we with this flagship project of your work at the head of the Ministry of Transport? It is a truism that the Niger Car fleet is old and this does not bode good circulation of people and goods . That is why the Government, under the leadership of His Excellency Mahamadou Issoufou, President of the Republic, Head of State, is firmly committed to a policy of reform and modernization of the infrastructure including the transport sector . In this context, the Ministry of Transport's implemented since 2013, a project to renew the Public Transport Fleet with support and institutional support of the 10th EDF Road program. In April 2014, the National Assembly adopted a law code investments in the Republic of Niger. This investment code which, for the first time in Niger attaches great importance to the transport sector, is one of the major instruments of funding for the renewal of the Public Transport fleet in Niger. As part of the implementation this project, several missions were carried out within the country to identify and select the recipients. The choice of companies producing different types of vehicles is underway. Prospecting missions and research partnership were held outside the country. We have reorganized the establishment of credit lines in the various banks in the market. Already, we have recently signed a partnership agreement with the BIA, and other local banks will follow suit not, for the financing of activities.
Those are bizarre responses to your direct questions
Is there any chance you posted Marty's answers out of the order she gave them to you? I'll explain why I ask.
Instead of taking the opportunity to address the elephant in the room about whether this deal and the Niger Fleet Renewal project are the same, her responses were generic and non-committal, and frankly, Mik is right to have qualms about such indirect answers.
The only part of her first answer that seemed to be in direct reference to your first question was "our representatives said not to worry about these". In the context of your first question and her answer, the only plural noun that qualifies to be referenced as "these" is the news articles. Of course, I'm not sure what cause we would have to "worry" about the articles or anything else she might be referencing in that question.
The only other interpretation I can think to assign to her answers is that Niger is required to have at least 3 different companies bid on the fleet renewal project and Ameramex can't claim in any way that they are already selected as the winner of the bid (even if they believe that they are). In a typical bidding process, if a company knows they already have the bid before it is complete - that opens the door for all kinds of legal problems. That also might explain why they are now deliberately deferring to this mantra of "until it is complete...it isn't done" .
If you happened to have reversed the order that her answers were provided to you, then it is possible (even likely) that "these" could be the other bidders who we are not supposed to worry about because "we are the only company with a signed agreement".
Apparent Corroboration on 5-Year Time Frame
In an Dec 2014 article written about the Niger Minister of Transport, he dropped this tiny quote regarding the truck purchase deal:
"Transport Minister spoke about the renewal of the car park where the project set up shortly provides for the acquisition of 5,000 vehicles over a period of five years. Two agreements were signed with two banks located in Niger to facilitate the creation of lines credit."
Source: http://www.google.com/translate_c?langpair=fr|en&u=http://news.aniamey.com/h/24825.html
The rest of the article is all over the place on transport, licenses, airports, etc. This was the only quote that was relevant.
Seems like too many pieces are fitting the AMMX narrative for this not to be the same deal. Now we just have to hope our Ameramex truly has a seat at the table as the truck supplier.
Thanks for all the kind words to everybody. Just hoping this is an accurate picture of what's going on and that the deal lands and we all profit like we hope.
Additional Research - Part 3
The Niger article in my last post specifically said the purpose of the workshop put on by the Ministry of Transport was "to communicate the benefits of the Investment Code for the transport sector to facilitate investment and financing of import of new vehicles" and to provide "technical presentations .. on.. steps to take to benefit the mechanisms of guarantee funds AFD and SAHFI TANYO".
TANYO and SAHFI were created by the European Union for the sole purpose of encouraging loans to the private sector in Niger.
See: http://www.google.com/translate_c?langpair=fr|en&u=http://www.sahfi.net/index.html
Note that in the link above, the Bank of Africa (BIA) is a partner for SAHFI. This is the bank who signed the deal with Niger in the the January 6, 2014 press release (see Reply link above).
And finally, the following is an excerpt from a World Bank document published in 2010 about Niger and SME (small and medium enterprise) financing that specifically mentions SAHFI and TANYO:
Source: https://openknowledge.worldbank.org/bitstream/handle/10986/15969/807290ESW0Nige00Box379814B00Public0.txt?sequence=2
A. SMALL AND MEDIUM ENTERPRISE FINANCING
45. Bank credit in Niger is a major constraint for businesses, particularly SMEs. It
trails far behind internal resources as a source of financing. According to the Investment
Climate Assessment (ICA), 70 percent of businesses surveyed have indicated that access to
financing is a major constraint. The same can be said of the cost of credit which was 2.2
percent higher for SMEs than for large enterprises. Access to traditional bank financing (loans
and overdraft facilities) is mainly determined by the size of the enterprise, availability of
audited financial statements, and whether or not the firm is in the import business. The
underlying causes of this lack of access to financing for SMEs are, on the demand side, the
lack of transparency of SMEs, as reflected in the difficulties they have in producing reliable
financial statements and sound business plans; and the lack of guarantees/collateral admissible
under BCEAO regulations. On the supply side, the main constraints are the banks’ lack of
capacity to move away from loans based on guarantees and to analyze the situation of non-
traditional customers offering limited information on their financial position.
46. A new mechanism has been established to remove some of the constraints for
SMEs access to finance. The TANYO Group offers technical assistance to firms for
preparing financial statements, business plans, and loan applications. If the financing is
approved, then the Group also monitors the investments and operations. The Sahelian
Financial Corporation (SAHFI) offers a partial loan guarantee equivalent to a maximum of
CFAF 50 million or 50 percent of the loan amount (whichever is lower). For its part, the
European Investment Bank has already granted two lines of credit that have been fully
utilized in the amount of € 13 million. A third line of credit is now in preparation. The Group
is currently looking toward international agencies for additional financing. In addition to
individual guarantees, the scheme could also propose portfolio guarantee instruments that
would allow some banks and MFIs to reach smaller enterprises. This portfolio guarantee
should be accompanied by technical assistance providedby donors and international financial
institutions.
*** End of Quote ****
I think many of us have been under the impression that the government of Niger is purchasing these trucks, but in the AMMX press release on August 14, 2014 - Lee Hamre made the following statement "the two banks and the government of Niger expect the various contracts between the banks, the government and private companies responsible for the transportation projects to take six to eight weeks for completion". Source: http://www.ammx.net/profiles/investor/ResLibraryView.asp?BzID=1512&ResLibraryID=71950&Category=1051&G=730
This clearly indicates that private companies are involved in the purchase of these trucks.
The whole point of these "10th EDF" aid funds is to spur private businesses to subsidize purchases and to get local banks to feel safe in making loans through backed by loan guarantees. The World Bank (or some other EDF proxy) guarantees the loans after MUCH due diligence and finally signs off on the program so the banks and government can issue those loans.
From the press releases and news articles, it appears that
(1) Ameramex has positioned themselves as the supplier for the 1500 trucks and 1500 trailers over a 5 year period,
(2) there are now 3 banks issuing lines of credits to the private sector in cooperation with the government of Niger for the purchase of these trucks in compliance with TANYO/SAHFI policies under the EDF
(3) the European Union through the EDF program is guaranteeing and possibly supplementing these loans through the World Bank or some other proxy to encourage development of the transport sector in Niger.
This information to me seems to corroborate everything Ameramex has told us although they haven't spelled out the details very well if these are indeed the details. $200 million is a lot of money to underwrite and there are a lot of criteria that will have to be met and maintained by all parties involved to finally secure the guarantee on these funds. I don't know what Lee Hamre can do as the supplier to convince the banks to guarantee these loans, but it makes sense now why there could be so many delays and why they can't give us solid assurance this program will ever reach a final approval and agreement.
I look forward to anybody either supplementing or tearing away at the research.
Additional Research - Part 2
In the Ameramex press release on July 30, 2014, Lee Hamre makes the following quote: "Initially the funding organization required one Niger Bank's guarantee but then requested a second bank's participation. We have received the two banks' commitment letters and the next step is for the banks to prepare and submit their bank guarantees to the lender". Source: http://globenewswire.com/news-release/2014/07/30/654553/10091898/en/AmeraMex-International-Provides-Niger-Update.html
The following news article was released in August 2014 (the same time period as the press release above) and it seems to corroborate Ameramex's statement about the two banks. Its also important to note that Ameramex made their statement before this article was published.
Source: http://www.google.com/translate_c?langpair=fr|en&u=http://www.lesahel.org/index.php/component/k2/item/6358-atelier-de-communication-et-de-promotion-du-projet-de-renouvellement-du-parc-des-v%C3%A9hicules-de-transport-public-au-niger--dimportantes-facilit%C3%A9s-consenties-par-letat-pour-favoriser-lacquisition-de-v%C3%A9hicules-de-transport-public-%C3%A0-l%C3%A9tat-neuf
Communication Workshop and promoting Renewal Project Park Public Transport Vehicles in Niger: Important facilities granted by the State to promote the acquisition of public transport vehicles in mint condition
The Ministry of Transport in collaboration with the European Union held this morning at the Grand Hotel of Niamey, a communications workshop and promoting fleet renewal project of public transport vehicles in Niger. It is the Minister of Transport, Mr. Saley Saidou who chaired the opening session in the presence of his counterpart Equipment, Chargé d'Affaires ai of the Delegation of the European Union to the Republic of Niger, Rafael Aguirre Unceta, responsible leaders of this issue of the vehicle fleet and several guests.
The Nigerian government is committed to a policy of reform and modernization of infrastructure including the transport sector. It is in this context that the Department of Transport has been implementing since 2013 a project to renew the public transport vehicle fleet with the support and Institutional Support to the 10th EDF road program. In his workshop opening speech, the Minister Saley Saidou recalled that the National Assembly adopted in April 2014 a law code investments in the Republic of Niger. '' The special feature of this law is to promote the development of socio-economic activities by stimulating investment in Niger, '' he has said.
Transport Minister noted that the Investment Code gives for the first time in Niger, an important place in the transport sector. '' It is one of the major instruments of renewed funding of the public transport fleet in Niger, '' said Mr. Saley Saidou. Indeed, the new Investment Code grants exemptions for the acquisition of public passenger transport in new condition, up to ten (10) buses and spare parts in a proportion of 10% the value of each bus; the acquisition of public transport of goods in the new state to the tune of at least five (5) trucks and spare parts in a proportion of 20% of the value of each truck. Transport Minister to ensure that it will also negotiated the establishment of credit lines in the various banks in the market. '' Already, two banks responded favorably and agreements will be signed soon, '' said Mr. Saley Saidou.
According to the Minister of Transport, so it was deemed necessary after a year of implementation of the project and the adoption of incentives discussed above to organize this communication and promotion workshop whose main objective is to improve the competitiveness of the sector. The workshop will be, he says, especially the opportunity to communicate the benefits of the Investment Code for the transport sector to facilitate investment and financing of import of new vehicles. To this end, it shall be a first assessment of the project activities as well as technical presentations including the impact on the benefits provided by the carrier code of Investments and the steps to take to benefit the mechanisms of guarantee funds AFD and SAHFI TANYO, incorporation procedures for small carriers OIE or society, the facilities offered by the banks, etc.
Previously, the Chargé d'Affaires of the Delegation of the European Union in Niger, Rafael Aguirre Unceta, indicated that in the framework of the implementation of the 10th EDF National Indicative Programme (European Development Fund), the EU has spent the Transport Sector profit totaling 165 million euros, in form of donations, about 110 billion FCFA. The support of the European Union is to allow not only the rehabilitation of 600 km of main paved roads and 170 km of earth roads throughout the country, but also the support of the government's reform policy transport sector to enable it to play its pivotal role in the development of economic and commercial activities in the country. It is in this context that the EU finance an institutional support project and a program estimate for the Ministry of Infrastructure and Transport, for a total amount of € 4.3 million or approximately 2.8 billion FCFA over a period of three years (2012-2014).
According to Mr. Rafael Aguirre Unceta, vehicle fleet renewal project, especially for the heavy truck fleet, is one of the main supporting measures the policy of the fight against overloading of trucks, the leading cause of premature deterioration of roads in Niger, the Nigerian government is trying to fight through the implementation of Regulation No. 14 of the WAEMU.
Stressing that the construction and road maintenance are very expensive to the state, the Chargé d'affaires park renewal indicated thus enable Niger to have a modern fleet of vehicles complying with international technical standards not only allow it to reduce accidents , boost the activities of transport of goods and people inside and outside the country, but especially to preserve its road assets premature degradation due to overloading.
*** End of Article ***
Alternative article source justifying the August 2014 date: http://www.google.com/translate_c?langpair=fr|en&u=http://news.aniamey.com/h/19660.html
I know that this article mentions "at least five (5) trucks" which is nothing compared to the 1500 tractors and 1500 trailers mentioned in the original news articles from January 6, 2014, but this article specifically mentions the same vehicle renewal project and the same role of the 10th EDF in guaranteeing the funds which was prominent in the January 6, 2015 news articles. (see Reply link for Jan 6 articles)
The next and final post (Part 3) will show some interesting relevance about "SAHFI" and "TANYO" which are referenced in the news article above and how they appear to also corroborate some of the Ameramex press releases.
Additional Research - Part 1
First - let me state that the goal of this research is to maybe get independent verification of the Ameramex press releases about Niger, and in so doing, perhaps establish some confidence into the stock price if it can be found.
The previous "chinese" articles I posted mentioned "institutional support of the 10th EDF road program" for the Niger fleet renewal project - so I did some digging into "10th EDF". (please click on the Reply link above if you need to see those articles)
EDF stands for European Development Fund which is a huge financial aid package created by the EU for helping developing countries. The 10th EDF is simply the 10th iteration of rules and fund commitments from each EU country since the program began.
The following is from a "Winning Business in Africa" guide and it provides a good explanation about how the EDF benefits other countries like Niger:
"A significant proportion of European Commission development funding is used to help partner countries improve their transport systems and overall infrastructures. The EU aims to help partner countries improve transport as a means of achieving broader goals of reducing poverty, sustaining economic growth and stimulating social development. To achieve the set goals, the Commission works in partnership with country stakeholders as well as other aid donors through regional and continental programmes.
The EU finances several infrastructure/transport projects through the EU-Africa Infrastructure partnership with the goal to ensure national and regional networks for transport, water, energy, telecoms and related services.
The EU-Africa Infrastructure partnership is financed by the following sources:
* EU Infrastructure Trust Fund - implemented jointly with the
European Investment Bank (EIB)
* European Development Fund (EDF) - regional and national resources
* Intra-ACP resources "
Source: http://www.ieef.ie/Sectors/IEEF/IEEF.nsf/vPages/Press_and_Publications~winning-business-in-africa---building-a-cluster-for-infrastructure-projects-13-09-2012/%24file/Winning%20Business%20in%20Africa%20Market%20Assessment%20Summary.pdf
The EU also provides a terrific site explaining all aspects of the EDF. See http://ec.europa.eu/europeaid/node/1079
The next post (Part 2) will show possible evidence of a strong link between Ameramex press releases and Niger's attempt to secure financing for the fleet renewal project (truck purchases) through the EDF.
That is a hopeful reply from Marty.
If the Niger deal was truly a ruse, this would have been the perfect timing to make the excuse that the Niger deal was off because of regional risks as they have in the past.
Missed that. Sorry.
Niger State is not the Republic of Niger. Niger State is a state in Nigeria. The Republic of Niger is a separate country.
Ameramex is claiming they have MOA's from the Republic of Niger, not Niger State. You are sending questions to the wrong government.
The "official" websites for the Republic of Niger are http://www.gouv.ne and http://www.presidence.ne.
I don't mean to offend or embarrass, but you might want to read up on the region before diving too far into this task you have undertaken.
Hey Mik. Just like you I search periodically for any information to justify my AMMX investment. I noticed google searches would often yield French news articles about Niger in the results or French articles on Chinese websites - which makes sense since French is the national language and China has a lot of activity in Niger right now.
Your cynicism (which I think is somewhat justified) actually spurred me today to do some more digging and while I was searching I got the idea that a Chinese company with a pending $300 million truck deal might be making noise about that.
Since Google doesn't yielding Chinese results in their searches, I found that www.baidu.com is the google of China. So I went there and typed in Niger, told Google Chrome to translate for me, went to the News link and the article was sitting there on the front page about 5 or 6 links down.
After that, I went back to Google and searched on Ouhoumoudou Mahamadou (the BIA agent) and Saidou (the Niger minister) and found quite a few French articles on the signing event.
There is a reason AMMX has not told us about this. It might be they don't know about it, but I highly doubt that. It might mean their place at the table is not fully secured yet or this signing event might just be a show between Niger and its state bank to generate interest from other banks to help underwrite the deal. I'm looking forward to Ameramex's response to this.
Another Article - EU as a Partner?
See end of article. Something about EU as a partner and other banks following suit? Could be a bad translation by Google.
Source: http://www.lesahel.org/index.php/component/k2/item/7617-signature-de-convention-de-partenariat-entre-le-minist%C3%A8re-des-transports-et-la-banque-internationale-pour-lafrique-bia--235-milliards-de-fcfa-pour-le-renouvellement-du-parc-automobile-de-transport-public
Signing of partnership agreement between the Department of Transport and the International Bank for Africa (BIA): 235 billion FCFA for the renewal of the fleet of public transport.
Transport Minister Mr Saley Saidou and the Director General of the International Bank for Africa (BIA) Mr Mahamadou Ouhoumoudou conducted last Friday in the meeting room of that Ministry, the signing of a partnership agreement on the renewal of the fleet of public transport vehicles. Through this act, the government aims to operationalize its policy of reform and modernization of the transport sector to ensure greater competitiveness of the economy. The of this agreement signing ceremony was attended by two other members of the government; President of the Chamber of Commerce, Industry and Crafts of Niger; Presidents of the unions carriers and members of the steering committee of the renewal project of public transport vehicles park.
The public transport vehicle fleet renewal project implemented since 2013 by the Ministry of Transport with support from the institutional support of the 10th EDF road program stems from a simple observation which is that of the age of the park public transport vehicles of freight and the affected public passenger transport. Taking the pore on the occasion, the Minister of Transport M, Saley Saidou said the average age of tractors is estimated at 23 years, the trailers to 29 and that of trucks to 25 years. The aging fleet is due to traffic accidents, increase in transportation costs and pollution source. According to a study by the United Nations Environment Programme (UNEP), the transport sector contributes around 37% of the effects of greenhouse gases. Cars are large air pollution sources in cities. In Niger, said the minister of transport, the road transport sub-sector remains characterized by the existence of small-carriers operating a three vehicles, poorly supervised and evolving in an informal economy and whose access to bank credit is very limited.
Moreover, the proposed new public transport fleet, particularly targeted in the revival program of Niger, the General Policy Statement of the Prime Minister, the Economic and Social Development Plan and the National Transport Strategy also form the main measure of Community policies against overload practices of heavy vehicles and for the preservation of the country's road assets. The overall objective is to improve the competitiveness of road transport activities of goods and hydrocarbons, and the quality of services for passenger transport. Through the project, it is planned to buy 5,000 new vehicles with 1500 tractors; 1500 semi-trailers; 520 minibus 19 and 30 seats; 180 buses / coaches of greater than or equal to 30 seating capacity 300 straight trucks and 1,000 taxis purpose vehicles for a total cost of 235 billion FCFA TTC. The implementation of this agreement requires a strong involvement of all stakeholders in the transport chain, noted the Minister of Transport.
For the Director General of the International Bank for Africa Mr Mahamadou Ouhoumoudou the signing of this agreement demonstrates once again the role that a bank has to play in supporting the economy of a country. Indeed, the International Bank for Africa is the first bank established in Niger. She had started operations in Magaria accompanying peanut producers before transferring its headquarters in Niamey. This is a bank that has always accompanied the Niger in all phases of development. The renewal project Fleet, said the CEO of the BIA is an extremely important project for Niger. The latter is a continental country with the nearest port is more than 1000 km. It is a truism that road transport is crucial for the Niger. '' The initiative to think of fleet renewal in an organized manner is laudable. And being able to get the support of the European Union is vital, because the presence of a serious partner such as the EU reassures us as a banker. I remain convinced that other banks will follow suit us not '', wished the Director General of the BIA. Hassane Daouda
DEAL SIGNED?? Please see my linked post
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=109784635
Recent Chinese press releases (one in Chinese and one in French). These are the translations of the news articles. I've included links to the originals.
Source: http://bank.cnfol.com/waiziyinhang/20150107/19863978.shtml
Niger's Ministry of transport and public transport vehicles updated African International Bank signed cooperation agreement
Author: Wang Wei 2015-01-07 13:37:51
On January 2, Niger's Transport Minister Saidou and African International Bank (BIA) General Manager mohanmodu signed the national public transport vehicles updated cooperation agreements.
Saidou said at the signing ceremony, Minister, this item totaled 235 billion West African francs (about 470 million US dollars), plans to purchase 1500 road tractor, 1500 tractor semi-trailer towing vehicle, 520 cars, 180 buses, 300 and 1000 trucks a taxi waiting for a total of 5,000 vehicles, to improve passenger and cargo transport capacity and ensure sustained development. Says, major public transport vehicles are over 20 years old, a worse aging, not only cause traffic accidents, increased passenger and freight transport costs, but also become a major source of air pollution. Racing also said that this project is the Nigerian Government against overloading of vehicles, to protect highway infrastructure and an important measure to enhance the modernization of the industry.
African International Bank General Manager mohanmodu said at the signing ceremony, Niger as a landlocked country, distance to the nearest port for more than 1000 km, road transport is vital to national economic development. He also said that the EU's support for the project, will make the project more attractive partner.
Source: http://french.cri.cn/621/2015/01/05/602s416412.htm
Niger renews its fleet for better competitiveness of the economy
2015-01-05 6:50:44 p.m. xinhua
The Nigerian government, with the aim of ensuring better competitiveness to its economy, has launched a fleet renewal campaign for public transport vehicles across the country.
The Convention on the operation, whose cost is estimated at about 235 billion FCFA was signed at the weekend between the Nigerian Minister of Transport, Saley Saidou, and the Director General of the International Bank for Africa ( BIA), Mahamadou Ouhoumoudou, as part of a partnership between the two institutions.
The project, initiated in 2013 by the Ministry of Transport with the institutional support of the 10th EDF road program, the result of a finding of the age of the vehicle fleet transport of goods and the affected public passenger transport.
The objective is to improve the competitiveness of road transport activities of goods and hydrocarbons, and the quality of services for passenger transport.
It is envisaged the acquisition of 5,000 new vehicles with 1,500 tractors, 1,500 trailers, 520 minibuses, 180 buses / coaches, 300 straight trucks and 1,000 taxis purpose vehicles.
In Niger, according to Mr. Saidou, "the average age of tractors is estimated at 23 years, the trailers to 29 and that of trucks to 25 years."
"The aging fleet is due to traffic accidents, increased transportation costs and pollution source," he explained.
In addition, according to a study by the United Nations Environment Programme (UNEP), the transport sector contributes around 37% of greenhouse gas emissions. Cars are large air pollution sources in cities.
Niger is a landlocked country whose nearest port is Cotonou (Benin) which is more than 1 000 km.
US launches $1 billion push for off-grid Africa power
Hopefully funding for the AMMX solar power project is helped by this:
http://news.yahoo.com/us-launches-1-billion-push-off-grid-africa-234353238.html?utm_content=buffer9d9b1&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer
This board is deteriorating.
I'm not a professional investor. I love coming to this board for the excellent, educated insights and opinions on my investment. Other people have commented on how great this board is - so its not just me that thinks this.
However, lately this board has become a pissing contest with somebody whose opinions can easily be qualified as meaningless trolling for attention. I'm rapidly losing interest in this board as a source for anything other than petty squabbling - which is sad.
Please ignore this guy and get this board back up to the standards that you guys had it at. Just one guy's opinion. Thanks.
Chinese news is reporting today:
The National Assembly of Niger in Niamey on Wednesday passed a bill on a credit agreement with the Chinese Exim Bank in the amount of one billion U.S. dollars, equivalent to 480 billion FCFA financing various projects in Niger.
The bill was adopted by 67 votes to 18 against, after 3 hours of discussions.
The law allows the Nigerian government funding for various projects in the fields of construction, agriculture, engineering and industry.
I think the fact that the loan was being offered by China was already out there, but its a new development that Niger's Assembly had not yet accepted the loan until yesterday. Hopefully the Ameramex contract is in that mix.
The article is in French, so use the Google Chrome browser and tell it to translate the article for you once its loaded.
http://french.china.org.cn/foreign/txt/2014-05/29/content_32519191.htm
If the Niger deal is significantly delayed or falls through, where do you guys think the price settles in the short-term?
I know the company fundamentals are good, but I can't help but think some of the current price is floating on anticipation good news comes back.