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Jaylin
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10 years investing experience with a primary focus on OTC stocks. Well balanced technical and fundamental analysis.
  • AmeraMex International Inc Finds New Revenue Streams With Old Equipment 2 comments
    Dec 26, 2013 1:50 PM | about stocks: AMMX

    AmeraMex International describes itself as a provider of, "heavy equipment to high growth industries, such as heavy construction, surface mining, infrastructure, logging, shipping and transportation." But, this hardly tells the whole story.

    30 years ago they started as a used forklift dealer in Northern California. Today, AmeraMex operates an estimated $5 million fleet of heavy equipment for sale or lease in the US, Canada, Africa, Indonesia, Germany, Singapore, Vietnam, China, Russia, Central America and Mexico.

    For the 9 months ending September 30th, AmeraMex posted revenue of $3.1 million compared to $2.3 million for the same period in 2012. For the third quarter alone, AmeraMex had revenue of $1.4 million.

    What accounts for this increased revenue? Besides their standard heavy equipment sales and leases, AmeraMex has recently tapped into a new niche' market. The purchase and refurbishment of older equipment that, although may no longer meet US EPA standards, is in high demand in developing foreign countries that can't otherwise afford newer equipment. Lee Hamre, the company's CEO has recently stated, "As seen in our third quarter gross profit margins, refurbished equipment carries much better margins than new equipment and with an increasing inventory of refurbished equipment, we expect to finish the year with a strong fourth quarter and continue the trend into 2014."

    Continuing this trend is exactly what AmeraMex is doing. The company has a fully staffed refurbishment facility and has recently acquired 18 shipping container handling machines. 2 of these machines have already been fully refurbished and shipped to customers. The company anticipates these shipping handlers will generate sales of over $3 million dollars between the 4th quarter of 2013 and the 1st quarter of 2014.

    With a 30 year track record in the industry, an increasing international market reach, and revenues that range from $1 million to $3 million on a quarterly basis, what would you expect to pay per share of (OTCPK:AMMX)? 2.00, 1.00, .50, .20? Nope. AmeraMex currently trades, as of this writing, at a whopping .0026. That's right, it's a sub penny. A trend that's not likely to continue much longer.

    AmeraMex International has a conference call planned for mid January. Additional info can be found at www.ammx.net

    Stocks: AMMX
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  • MikTrader
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    Comment (1) | Send Message
     
    Jaylin, how come you chose this to be an instablog instead of an article to be sent out? Thanks, Mike
    16 Feb 2014, 01:29 PM Reply Like
  • Jaylin
    , contributor
    Comments (3) | Send Message
     
    Author’s reply » I dunno. LOL
    7 Apr 2014, 03:01 AM Reply Like
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