Replies to post #11034 on AmeraMex International Inc. (AMMX)

[AJSails]

All good points, thank you. Do you believe we have created a floor of .04's with these latest financials?

[Dough Theory]

micham2012, I was told about a week ago or so that there are no plans for anymore dilution. You can call or email IR to get the information.

[kpo107]

Yes, P/E of 30 based on $0.045 sh price (I used a s/p of $0.043 for my calcs). Yup, share count does need to be watched, however, they were operating in the red on an equity basis so I can understand the jump. Revenue was down about $300k Q4/Q1 and their margins do jump all over the place but Q1 net income was about 4x Q4 #'s ($200k vs. $50k).

Bottom line is that the stock is incredibly undervalued (assuming insignificant future dilution) based solely on a steady track of current business, all bets are off if one of the big deals gets inked. I think you're right though in that the share price has had a huge run and until one of those big deals gets announced we may languish for a bit.

[ForReal]

If you play poker, you will understand the analogy of keeping even, until you win that one pot. Then your whole game changes. AMMX, even if only holding even, for now, is way better than using equity financing to continue operations. If they had to use Asher or any of his friends, this would not be as sure an investment, at this time, as it is. Being profitable is even better than holding even. When the deal in Niger is completed, the whole game changes. The power of cash at the poker table and in business, is what usually determines the end game result. The OTC game of "Investing" is more like wagering at the poker table. A strong hand makes for a greater degree of confidence that you will go home a winner. Just staying even, at this point, should be an inducement to OTC "Investors" to buy up shares here. Your synopsis of no/low growth of the company is solely based on EPS growth and not Revenue/Profit growth. I look at it differently and am enthused by the growth in revenue and profit, no matter the EPS and multiples value. Maybe sometime in the future, I would weigh those statistics more heavily, but not at this point in time and in this sector of the market.