Replies to post #6661 on AmeraMex International Inc. (AMMX)

[alien42]

I think you (and others) are being too generous on the $270M contract. AMMX will not be awarded the entire contract amount.

fortunately, you are incorrect about that. Lee Hamre made it crystal clear on the CC that AMMX would be supplying the entire $270 Million order for Chinese equipment if they get the contract.

[investorcg]

Originally, I thought you were right. However, in the CC it was specifically asked if all that amount would be going to AMMX, and he said 100%.

[stervc]

biglued1, respectfully, here's why such won't matter...

I do 100% agree with your thoughts in that the $270,000,000 Niger Contract will be distributed in increments. I would suspect in $20 to $50 Million increments. Still, in my opinion, such won't matter if it is all at once or in increments. Here's why...

The thought is that the growth with AMMX is going to be an "exponential" growth that will continue on a regular basis for years to come in my opinion as they obtain each of their contracts. I’m not expecting an all of a sudden shoot up in price to trade at the valuation I posted. I guess it could shoot up as such as I have seen such happen with stocks of a lesser magnitude, but such is not what I am expecting. I say this for a few reasons. Even after this $270 million contract, there are quite a few contracts in the queue and some of them are valued to be much higher than the $270 Million Niger contract.

Something else significant to consider, the #1 reason why we invest in any stock in the market is because of the ”potential” that we see in a stock. If AMMX obtains an initial $20 to $50 Million from the $270 Million contact, then the market will acknowledge the ”full potential” of AMMX in my opinion. Investors would want to buy discounted shares on the belief of where AMMX would ”potentially” appear to be heading. This is where it would trade based on the ”Growth Rate” for the Industry of which it would trade or like what I discussed within my valuation post… the P/E Ratio.

The market in my opinion could potentially buy AMMX up to the level as if the full $270 Million contract has been obtained on the premise of... since such a large amount would have been delivered as the initial payment to honor the contract, then it leads credence that the remaining balance of the $270 Million contract would be coming too to further honor the contract. Instead of having reasons of doubt, such would trigger huge reasons of confidence to believe just how serious AMMX and the support they have for these projects truly are. It would clearly be understood that AMMX would… no longer be a trade, but rather an investment.

v/r
Sterling