SurgiLight, Inc. (fka SLGTQ)

[NASDAQ2020]

Reasons to invest in AMMX - has potential to hit dollarland

- No dilution. Management taking restricted shares as salary. shows belief of Management in stock price
- 30 year old company in Chico, CA. got hit during the recent recession. diversified operations to international countries, and is now making a comeback. generating contracts in latin america, across US, and potentially huge projects in Africa. AMMX generated $20 to $30 million pre-recession though with less profit margins.
- low float - 230 million. OS - 520.1 million. restricted - 288 million. (out of the restricted shares, management holds 180 million)
- positive cash flow of $817K per 2013 Annual financials released today. Inventory is $955K, Accounts Receivable is $748K
- No note receivables
- In 2013, revenue increased by 79 percent & net income increased by 362 percent compared to 2012 financials.
- During the first 3 months of 2014, company has already announced contracts worth $2.727 million. compare it to 2013 annual revenues of $6.1 million.
- huge pending projects(projects in the range of $270 million, $500 million, $40 million etc) in Africa. even if AMMX can secure one of these projects, we are looking at a huge increase in PPS.
- high probability of securing the $270 million Niger project. during the recent conference call, Lee Hamre(CEO) mentioned that Niger PM visited AMMX facilities in Chico, CA. Lee made 30+ trips to Africa establishing relationships, and building the ground work during the past 5 years. IMO, it's not a matter of 'if', but it's about 'when' we hear the news of AMMX securing this $270 million contract.
- CEO is highly confident of securing the $270 million Niger deal. should get more details during next week.
- stock is trending up, and is establishing support at key levels.
- company is issuing PRs on a regular basis. A very transparent company in terms of communications with share holders - conference calls, regular PRs etc.
- As MarqueeGemFinder pointed out, with the new EPA 2015 changes, AMMX is rightly situated to take advantage of the huge demand for US domestic core operations for handlers and equipment upgrades.
- strong possibility that AMMX will hit dollar land in 2014. Once AMMX secures one big project, AMMX would have huge cash flow, and I think the barrage of other huge contracts would follow.

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Total Number of Shares Issued and Outstanding: 520.1 million
Float : 230 million, Restricted : 280 million (out of the restricted shares, management holds 180 million shares)

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true valuation of AMMX based on 2013 financials released today. (http://finance.yahoo.com/news/ameramex-international-reports-end-financials-140000619.html )

The company reported revenue of approximately $6.1 million with gross profit of $2.6 million compared to revenue of approximately $3.4 million with gross profit of $2.4 million for the year ended December 31, 2012.

Borrowing from stervc's post - With AMMX, it is already known where such Sector/Industry that AMMX would trade. This particular Industry already has a growth rate (P/E Ratio) for the stocks that exists within such Industry. Logically, AMMX would be classified to exist and trade within the Industrial Equipment & Components Industry within the Industrial Goods Sector of which already has a 31.00 for its P/E Ratio as indicated below:
http://biz.yahoo.com/p/621conameu.html

$2,600,000 Net Profit Margin ÷ 520,100,00 Shares (OS) = .0049 EPS
0.0049 EPS x 31.00 P/E Ratio = $0.15 AMMX Per Share Valuation

Conservatively, even if we apply a P/E ratio of 10, share price should be 0.0049 EPS x 10.00 P/E Ratio = $0.49 AMMX Per Share Valuation (4.9 cents)

As of today AMMX is trading around 3 cents, which is still a bargain when compared to valuation based on 2013 financials.

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During the first 3 months of 2014, AMMX announced contracts that are worth $2.727 million. If AMMX goes at the same pace, we are looking at revenues > $10 million at end of year 2014.

In 2013, AMMX had $2.6 million profit on a $6.1 million revenue - which is a 42.6% margin. Assuming we have similar margins in 2014, for a $10million revenue, we are looking at a profit of $4.26 million.

For a $4.26 profit margin, valuation of AMMX would be
$4,260,000 Net Profit Margin ÷ 520,100,00 Shares (OS) = .0081 EPS
0.0081 EPS x 31.00 P/E Ratio = $0.25 AMMX Per Share Valuation

Conservatively, even if we apply a P/E ratio of 10, share price should be 0.0081 EPS x 10.00 P/E Ratio = $0.08 AMMX Per Share Valuation

These are very extreme conservative valuations.

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When we get the $270 million Niger contract, refer to stervc's valuations of hitting $1.41 per share (conservative) to $4.20 per share.