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Friday, 10/14/2022 2:34:12 PM

Friday, October 14, 2022 2:34:12 PM

Post# of 113856
I've been accumulating AMMX($.30); Q3 EPS could be $.05+

This CA-based heavy equipment leasing/supply company had a clunker of a Q2, with revenues down from $6.3M to $2.4M year-over-year. However, a large chunk of the shortfall ($3M) is due to "delays in shipping [which] were caused by back-ordered parts, interstate trucking delays and lack of availability of third-party shippers."

More importantly, "The Company is committed to getting the remaining machines shipped in the third quarter as well as continuing its ongoing sales efforts."

In its Q2 earnings PR, the company reported that 6-month EPS totaled $.03 vs $.03, but, "Had all sold equipment been shipped, net income for the six-month period would have been $1.3 million with EPS of $0.08."

I'm betting that Q3 EPS benefits from the slippage of those Q2 shipments, suggesting a minimum Q3 EPS of $.05 + whatever they might have made in the quarter otherwise.

AMMX has a nice share structure of just 14.6M shares outstanding for several years now. Insiders own 49%, so their interests are aligned with mine.


Here's a nice overview of the company...

https://www.proactiveinvestors.com/companies/news/995059/ameramex-is-recession-proof-with-its-strong-order-book-and-robust-heavy-equipment-sales-995059.html

In my opinion, recent selling in the shares can only be explained by sales from a Warren Murphy, who held about 1.36M shares @10/21 and should have significantly less than that now. Why Murphy is selling I can't imagine, but it's a great buying opportunity in my view going into the Q3 report...

We make a living by what we get, we make a life by what we give.
--Winston Churchill

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