AmeraMex International Inc. (AMMX)

[micham2012]

Happy to get your input.

I am not sure what the AMMX role is supposed to be. Niger's problems are huge and well known:

http://www.wfp.org/countries/niger

The country needs EVERYTHING. Where to begin?? But I don't understand how AMMX can expect to get $270 million for brokering a deal or for consulting services. So, the deal may be for $270 million, but I have no real feel for what AMMX will get out of it, or even what the deal is. And I can't believe that AMMX is in a position to "flip" $270 million worth of trucks at a significant margin.

But then again, a 1% finder's or brokering fee on $270 million would be huge in the life of this company, and it does appear that during the past few years AMMX has invested time and energy to create and cement relationships in West Africa. So, who knows? Maybe AMMX brings something of real value to the table. I had not considered the possibility of ongoing consulting services after the trucks are delivered. What are these trucks going to be used for?

For now, I am invested here because I think the company is worth more than $.03 per share on the strength of: (i) the business that it has announced is in the door; and (ii) the likelihood that similar business at that level will continue and even grow. I believe that the company has expertise and a niche in an industry that was beaten up by the recession but is likely to do better over the next few years, and that the Company's value overall is greater than the market seems to be giving it.

My major concern is solvency. The fact that a CFO and an IR person is compensated in whole or in part with stock is not always a good sign. I am looking forward to the numbers this week, but it is not clear to me that the Company is out of the woods yet.

Above all, I am not looking into luxury properties in the South of France based upon any expectation of a $270 million Niger/China deal. Would love to be wrong!