AmeraMex International Inc. (AMMX)

[stervc]

AMMX .20+ Fundamental Valuation

AMMX has been profitable for the past 9 (nine) quarters. AMMX has been profitable for the past 5 (five) years. What’s key now is the significant increase in being profitable to have Net Income of $1.2 Million (after taxes) as recently filed and indicated below for the first quarter ended March 31, 2016 of which I will show that this alone is justification for why AMMX is fundamentally .20+ per share:

http://www.otcmarkets.com/financialReportViewer?symbol=AMMX&id=155089


Equipment orders in Nigeria are in the process of being completed that is waiting for their newly appointed Minister of Finance to complete the money being converted into US Dollars. Things were previously delayed because there was nobody in that position to issue the funds for the deal. Now he’s there so now AMMX can move forward with their deal that they are in connections with Chevron of Nigeria that is scheduled to be signed in May 2016 per their last presentation to shareholders below:
http://www.ammx.net/Presentations

https://www.chevron.com/worldwide/nigeria


AMMX stated in their last conference call that the new president of Niger wants these deals to happen where the previous President wasn’t motivated to move forward because he knew that he was moving on with his life. They also have a partner in the Republic of Congo, and Project in Angola. They are working with Ecobank (the branch in China and Niger) to provide initial funding to get the trucks into Niger to begin operations. Here’s a little more about Ecobank:
http://www.ecobank.com/
http://www.ecobank.com/group/aboutus.aspx


Within the PR above, the company made statements strongly hinting that the growth should continue to exponentially grow so the fundamental valuation below will be based upon having minimally Net Income of $1.2 Million (after taxes) per quarter over a consistent four quarters (annually) which equates to $4.8 Net Income (after taxes) on an annual basis derived from below:

$1,200,000 Net Income Per Qtr x 4 Qtrs (Annually) = $4,800,000 Net Income Per Year

** FYI… $3,200,000 Revenues x 4 Qtrs = $12,800,000 Annual Revenues

Within the company’s last presentation a while back, a lot was discussed, but what stood out to me was when the CEO confirmed that they believe that the value of the company could be raised to be worth .15 to .20 per share with the current share structure based on some of the projects that they are currently working on right now and that’s without doing a reverse split:
http://www.ammx.net/Presentations

That was the year end Conference Call where such was stated and here we are now with AMMX where we have the numbers that were reported for the first quarter ended March 31, 2016. Now let’s derive a fundamental valuation from what was reported above by deriving an Earnings Per Share (EPS) to multiply by a Price to Earnings (P/E) Ratio from the variables that we know to exist here with AMMX:

Net Income ÷ OS = EPS

EPS X P/E Ratio = Share Price Valuation

Key Variables to Derive a Fundamental Valuation
** Net Income = $1,200,000 Per Qtr x 4 Qtrs = $4,800,000 Annually
** Outstanding Shares (OS) per Quarterly Filing = 778,200,000 Shares
http://www.otcmarkets.com/financialReportViewer?symbol=AMMX&id=155089
** P/E Ratio for Industrial Goods Sector = 36.98
** P/E Ratio for the Industrial Equipment & Components Industry = 110.40
https://biz.yahoo.com/p/621conameu.html
(P/E Ratios are confirmed from Yahoo link above as of 19 May 2016.)
** I will use the lower of the two P/E Ratios above for a worst case scenario.

$4,800,000 ÷ 778,200,000 Shares (OS) = .0062 EPS

.0062 EPS x 36.98 P/E Ratio = .23 Per Share Price Valuation

This means that if AMMX is not awarded another contract and only remains on its same consistent course of growth as a worst case scenario, then AMMX would fundamentally be worth approximately .23 per share. I think from doing a little extra research, one will learn that AMMX very likely could be awarded quite a few more contracts of which a few of them are ranging from $200,000,000 to $500,000,000 Contracts. Rather than post that valuation, I’ll recommend all to use the ”Substitution Property” to replace whatever ”Net Income” that one would be deemed fair from any $200,000,000 to $500,000,000 Contract awarded to AMMX.

AMMX have been working on these contracts for some years now so it would only make sense that the time could finally be here for one of these contracts to be announced. This is why I think it’s safe to presume that this .23 per share valuation is a reflection of a huge undervaluation that exist here with AMMX. I think it’s fair to believe that AMMX will be obtaining some more contracts. In my opinion, there is a great chance that one of these major deals with Africa will happen. This is not some deal to line the pockets of a company because of their business objectives. This is a deal to…

…enhance the growth of a country’s economy…
…increase and make better the standards of living for a people…
…make better the infrastructure of a country…
…bring 90,000 jobs to a depressed and suppressed economy…
…be able to feed 90 million Africans…
…farm one million acres of land in West Africa…
…build a full scale, fully staffed and equipped modern hospital (with a helipad on the roof)…
…bring in a complete oil refinery to train the needed operators and maintenance people…

Each of these contacts will all be huge and separate from one another and they are related to other AMMX contracts from such projects in the works below:

** The West Africa Farming Project
** The North African Transportation Department Project
** An Equipment Contract with 5 Hotels in North Africa Project
** The 15 year Railroad Project in Africa

The dollar figures for the above projects were all in the area of $200,000,000 to $500,000,000 projects/contracts from what I can recall that were in the queue to be awarded to AMMX from what can be confirmed from listening to the company presentations and news of old below (call the company to confirm too):
http://www.ammx.net/Presentations
http://www.ammx.net/Press_Releases

Below listed are the AMMX Partners which basically are the AMMX Family of Companies & Websites:

http://www.ammx.net


http://www.hamreequipment.com/default.htm


http://www.taylorbigredforklifts.com/


http://www.terex.com/en/


http://www.asvaus.com/


http://www.barko.com/


http://www.genielift.com/en/


http://www.menzimuck.com/en/home/


http://www.hamreequipment.com/about.htm


v/r
Sterling