Last trade was $0.40  Common Shares Outstanding:5,845,803  Target price $1.00  Rating 8/10


http://www.a-merc.com/cgi-local/press_new.cgi
   

American Ammunition Increases Product Line

 
Date: 11/06/2006    
 

American Ammunition Increases Product Line
Monday November 6, 10:01 am ET
MIAMI--(BUSINESS WIRE)--American Ammunition, Inc. (OTCBB:AAMU - News) announced today that it is increasing its product selection for the Triton line of products. With the success of the Quick-Shok line, the natural progression is to reintroduce the HI-Vel line. This hollow point product line is designed for the personal protection and shooting market. The marketing addition of 8 new offerings (.32 H&R Magnum, .380 auto, 9mm, 38 Super, .38 Special, 357 Magnum, .44 Special and .44 Magnum) focuses on market share in areas that have not been fully pursued by American Ammunition.
"The idea is to place new items in areas of the market that we have not had a large presence with a low entrance cost. It also gives our dealers a larger selection of products from us. I'm excited about the direction of American Ammunition for the 2007 calendar year and what we can offer to our dealers," said Paul Goebel, National Sales and Marketing Director of American Ammunition, Inc.
About American Ammunition, Inc.- AAMU is an autonomous manufacturer of ammunition, with the technology and equipment to take advantage of the growing market. It has an excellent reputation within the industry. The ammunition industry has experienced a 28% average increase in revenues annually between 1991 through 1998, and the trend is expected to continue through the year 2006 and beyond. For further product information, please call 1-305-835-7400 or visit the website at: www.a-merc.com. For Investor Relations information, please call: 1-561-514-0194.
This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

American Ammunition sucks.

no

Quoted: American Ammunition sucks.

Indeed:

The negatives listed below reinforce the suckiness of this stock.

Profitability  
Profit Margin (ttm): -204.12%
Operating Margin (ttm): -79.60%


Management Effectiveness
Return on Assets (ttm): -45.83%
Return on Equity (ttm): N/A  


Income Statement
Revenue (ttm): 2.70M
Revenue Per Share (ttm): 0.586
Qtrly Revenue Growth (yoy): -19.20%
Gross Profit (ttm): -1.35M
EBITDA (ttm): -1.82M
Net Income Avl to Common (ttm): -5.58M
Diluted EPS (ttm): -1.21
Qtrly Earnings Growth (yoy): N/A  

The current stock price is 40 cents for a reason.  

They suck at running a business.

They make a product you will buy once.  

Can someone describe in easy-to-understand terms what these figures mean to a company's stock performance?  Thanks

Profitability
Profit Margin (ttm): -204.12%
Operating Margin (ttm): -79.60%


Management Effectiveness
Return on Assets (ttm): -45.83%
Return on Equity (ttm): N/A


Income Statement
Revenue (ttm): 2.70M
Revenue Per Share (ttm): 0.586
Qtrly Revenue Growth (yoy): -19.20%
Gross Profit (ttm): -1.35M
EBITDA (ttm): -1.82M
Net Income Avl to Common (ttm): -5.58M
Diluted EPS (ttm): -1.21
Qtrly Earnings Growth (yoy): N/A

These are good stocks to invest in:

SPY
DIA
IWM
QQQ


...in that order.

If you had the cash, and were so inclined, it would be a great time to buy the whole damned company and put then on the straight and narrow.

Companies like that with poor management, with an undervalued stock are bargains to "corporate raiders" who can come in and plug in a great management team and a world class sales team.

Quoted: Can someone describe in easy-to-understand terms what these figures mean to a company's stock performance?  Thanks Profitability Profit Margin (ttm): -204.12%   They are losing money hand over fist. Operating Margin (ttm): -79.60%   They are out of cash. Management Effectiveness Return on Assets (ttm): -45.83%   They are making less than the value of the stuff they have. Return on Equity (ttm): N/A Income Statement Revenue (ttm): 2.70M   They sold this much stuff, but it's not profit. Revenue Per Share (ttm): 0.586   The line above divided by the outstanding shares. Qtrly Revenue Growth (yoy): -19.20%   They did not sell as much this quarter as they did last quarter. Gross Profit (ttm): -1.35M   They are losing money NOW. EBITDA (ttm): -1.82M   They can't make money not counting taxes and debt service. Net Income Avl to Common (ttm): -5.58M   The stockholders are screwed by this amount. Diluted EPS (ttm): -1.21   Stockholder screwing per share. Qtrly Earnings Growth (yoy): N/A

As I said, they suck at running a business.

Thanks for the input. I knew it was too good to be a wise investment.

Buy 1000 shares to put in your risk portfolio. If you lose, you are out only $400. If they do turnaround or some big guy buys them you could make thousands.

With the UN drying up surplus, American might get a big portion of the domestic market.

Another Mutha[add your Sam Jackson catchphrase]  Explodes Raising Costs

Quoted: Buy 1000 shares to put in your risk portfolio. If you lose, you are out only $400. If they do turnaround or some big guy buys them you could make thousands. Don't do this unless you can afford to lose $400.  If you can, and you have other stocks, a potential loss here can offset a gain somewhere else, possibly. With the UN drying up surplus, American might get a big portion of the domestic market.

 Only if they are making ammo that is not available in the domestic market due to the shortage.  I don't think they are, or this quarters performance would be better, I bet.

SS109 has a valid point, though.  If you are young and/or can afford the risk, it might pay off.  Assuming the nitwits running this outfit go to Oz and get a brain.

They would also need an infusion of cash for capital improvements to take advantage of a shift in product to something that could make money, assuming they can stop the bleeding.

Quoted: Only if they are making ammo that is not available in the domestic market due to the shortage.  I don't think they are, or this quarters performance would be better, I bet. SS109 has a valid point, though.  If you are young and/or can afford the risk, it might pay off.  Assuming the nitwits running this outfit go to Oz and get a brain. They would also need an infusion of cash for capital improvements to take advantage of a shift in product to something that could make money, assuming they can stop the bleeding.

They are partnered with IMI to increase the calibers, quantity, and quality of some of their ammo.  It doesn't seem to have helped the stock.  

I have owned this stock for over two years and other than one slight run up they have lost money and stock value the entire time.  Last year they did a reverse stock split.  I forget the ratio, it might have been 4 to 1.  Meaning for every 4 shares of stock you own you ended up with only 1.  That brought the stock price up to over a dollar...and you can see where it has ended up now.

The biggest problem that I've read about is how they did their initial financing.  They financed it the wrong way that pretty much guarantees that any time the stock price goes way up the investors get a ton of money or new shares and drive the stock back down.  Originally in 2007 they were supposed to be clear of most of that type of financing but I've seen that they went back for more financing in the last year using the same method.  I don't really understand that side of the stock, which is why I've lost most my investment on it, but the bottom line is for years to come that stock isn't going to be jumping through the roof.

Quoted: I have owned this stock for over two years and other than one slight run up they have lost money and stock value the entire time.  Last year they did a reverse stock split.  I forget the ratio, it might have been 4 to 1.  Meaning for every 4 shares of stock you own you ended up with only 1.  That brought the stock price up to over a dollar...and you can see where it has ended up now.

And you still own the stock?!

Quoted: These are good stocks to invest in: SPY DIA IWM QQQ ...in that order.

Could you elaborate more for a novice?

WBK

Quoted: If you had the cash, and were so inclined, it would be a great time to buy the whole damned company and put then on the straight and narrow. Companies like that with poor management, with an undervalued stock are bargains to "corporate raiders" who can come in and plug in a great management team and a world class sales team.

Group Buy?

Quoted: Quoted: These are good stocks to invest in: SPY DIA IWM QQQ ...in that order. Could you elaborate more for a novice? WBK

those stock are actually a basket of stocks, and will track with the market.

SPY = S&P Fund Index (holds all s&p 500 stocks)

DIA = same thing for the DOW

IWM = same for the Russell Index

QQQ = same for the Nasdaq 100 index

Quoted: Thanks for the input. I knew it was too good to be a wise investment.

What exactly was "too good" about it??

Quoted: Could you elaborate more for a novice?

NoVaGator covered it nicely.

Basically, I'm too big of a wuss to put all of my eggs in one basket, so I chose to diversify...a lot. By buying these ETFs (exchange traded funds) I am guaranteed to do not worse than the overall market. Of course, that also means that I do no better, but I am happy with a 10-15% historic rate of return.

Quoted: Quoted: If you had the cash, and were so inclined, it would be a great time to buy the whole damned company and put then on the straight and narrow. Companies like that with poor management, with an undervalued stock are bargains to "corporate raiders" who can come in and plug in a great management team and a world class sales team. Group Buy?

Renamed ARFKOM Ammo! You figure we would have the rapt attention of most American ammo whores!