Replies to post #6624 on AmeraMex International Inc. (AMMX)

[inxxs]

Bravo!

[stervc]

stayfocused**Key: With your AMMX Valuation...

Your AMMX valuation is fair and is right about what I had derived from a conservative viewpoint. I think it's fair to consider a 25% Net Profit Margin from this $270,000,000 Niger Contract that was mentioned within the AMMX Conference Call (CC) this past Friday, Feb 14, 2014. It was mentioned that the AMMX Management returned from both China and Niger two weeks ago from completing negotiations that allowed for the financing to be put in place from Chinese equipment companies. Management will be returning to Niger soon concerning this deal and to provide proposals for a solar energy project as well as a 'dry' port project before the end of February. So, I think we investors are in very good hands.
However, there is only one thing that I would have to consider too from a not so conservative viewpoint and that is considering something different than using the 10 P/E Ratio. I'll explain why.

Normally when the Price to Earnings (P/E) Ratio is unknown, I like to use 10, 11, or 12 as a conservative P/E Ratio to use. As we know, the P/E Ratio is basically the ”Growth Rate” for a group of similar stocks within a particular Sector or Industry for where a stock would be classified to exist/trade. For those new for understanding what a P/E Ratio is, read the links below that hopefully will help:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

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 30.50 for its P/E Ratio as indicated below:
http://biz.yahoo.com/p/621conameu.html
(As of 14-Feb-2014)

Now we can derive AMMX valuation from this known variable in my opinion:

$270,000,000 Nigel Contract Revenues x .25 Net Profit Margin = $67,500,000 Net Profit

To derive the Earnings Per Share (EPS) for AMMX… for the Outstanding Shares (OS), I will use the 478,677,215 shares amount recently confirmed from the company. Please, keep in mind to use the Substitution Property to substitute the OS or any other variable that might change as the exact details are released in the future. This valuation is only to give us a framework to use to gage the valuation for AMMX upon being awarded the $270,000,000 Contract that we are expecting to see awarded in the near future. So, to continue on…

$67,500,000 Net Profit Margin ÷ 478,677,215 Shares (OS) = .141 EPS

.141 EPS x 30.50 P/E Ratio = $4.30 AMMX Per Share Valuation

For those investors who think like you and would rather use a much more conservative 10 P/E Ratio of which I believe is also very fair to consider, then such below should be considered as an AMMX valuation:

.141 EPS x 10 P/E Ratio = $1.41 AMMX Per Share Valuation

Regardless, considering the confidence of what we now know from the recent AMMX CC this past Friday, I think we all here would be fine with either valuation to exist here with AMMX. Either way, we are in good hands.



Although the variety of $500,000,000 deals are still in the queue, as confirmed from the recent CC this past Friday, Feb 14, 2014, the $270,000,000 Nigel Contract appears to be first in the queue to be awarded in the near future. For those who have not heard the AMMX CC… an audio replay of the Conference Call (CC) will be available from February 14, 2014 at 3:30 p.m. Eastern until February 28, 2014 at 11:59 a.m. Eastern. The replay can be accessed by dialing 1-858-384-5517 and entering conference pin number 4660652.

Courtesy of upperdivision, below are some notes and key highlights from the CC:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=97321175



The AMMX Websites:

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


http://www.ammx.net





For those who are just learning about the magnitude of just what it is that AMMX is doing, read below:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=97289550
vanbasten, with these $500,000,000 Contracts...

That's the beauty of what's transpiring here with AMMX. It’s not a matter of ”if”they get one of these $500,000,000 Contracts, but it’s a matter of ”when” they get one of these contracts. Huge coordination, contract negotiations, and logistical planning have been done between AMMX and a few key entities to where again, it’s a matter of ”when” they get one of these contracts. They have been flying back and forth to Africa and China (funders) for quite a while now.

There are a few projects of which we are referring of which AMMX is in the queue for; the West Africa farming project; one dealing with the North African Transportation Department; an equipment contract for 5 hotels in North Africa; the 15 year railroad project in Africa.

The dollar figures for the above projects were all in the area of $500,000,000 to be awarded to AMMX if they are awarded the contract from what some have confirmed after speaking to the company and could go beyond depending on other related variables that could arise. Some of the investors that have been here much longer than I can feel free to chime in if they like, but these are just to name a few. It would not surprise me if something new/additional pops up to be announced of the same magnitude. I think this post might be worth another read for new investors just learning what it is that AMMX do:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=96801513
GM_Tech & All, with the AMMX close today...

I agree that it was a great close today with AMMX. They have a few $500 Million contracts in the queue of which I am very confident that AMMX will be obtaining at least one of them.

I like the MMJ (marijuana) stocks with how such is taking the market by surprise, but no disrespect to any of those hot MMJ companies, none of them have a $500 million contract that I am aware of.

To include no convertibles, no dilution, etc. ... let's not forget that here with AMMX...

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95560353
Why I’m over 95% Sure of the AMMX Africa Deal…

In my opinion, there is a greater than 95% chance that this $500 Million deal 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…

I think you get the point just how greatly AMMX is flying under the radar. This is why in my opinion, it’s not a matter of ”if” the deal closes, but ”when” the deal closes. This is a must for its government there in Africa to make happen to graduate its people in that area to the needed next level of existence. The government and its management is fully aware of this as they have ventured other lands that have experienced such levels of growth.

Read below to get an understanding from the AMMX website the further explanation of the importance of what’s being brought to the table with this $500 Million West Africa deal:


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



As stated above, AMMX are partners with Walker Farms to grow this Africa Venture:

http://www.walkerfarmsandproduce.com/


v/r
Sterling

v/r
Sterling