This stock should be bought here for at least a triple over the next year:
1. Not a fraud. 2. CEO owns 58% of the stock. 3. At last conference call, company said another buyback coming. 4. Recent quarterly report disappointing but still .14. 5. Tangible book value over $5. 6. Company arose out of Petrochina and still has strong ties there. 7. Market cap about $13 million. Annual sales about $250 million. 8. Only 9.6 shares outstanding. Only about 3.8 million shares not owned by CEO.
Anomalies sometimes happen in the investing world and stocks get badly mis-priced. That is almost always rectified in a reasonably short time.
You need to understand, I was a former shareholder of AMCF, and when I looked at their numbers, they look very great. But just like our great President Reagan said, "trust but verify". The company refused to communicate to shareholders before indicates a red flag.
If we can find the same information about the company in Chinese, I will be willing to be a buyer of this company. So, try to do the DD, rather than arguing or presenting the same fact again and again. Unless we can verify the data, we cannot trust the company.
So, let's say that you are the CEO or CFO of a company...
You can buy and get a return of 100% or more a year for decades.
You know the company inside out - what would you do?
You would buy like crazy as the insiders in MWE and NGLS did before thier stocks soared 500%. You would laugh at the panic sellers and instead take advantage of them by buying. So why isn't that occurring in the Chinese micro-caps?
The only explaination I can come up with is that they don't trust their own accounting. And if they don't ... why should we?
I'm not talking about all Chinese minis; I'm talking about AMCF. You say that the insiders should show their colors by buying their own stock. The CEO just spent another $500,000 of his own money to buy more stock less than a year ago. He already owned over 5 million shares at the time.
According to the recent conference call, another buyback will be coming along, though whether it will be more buyback by the company (they also bought $500,000 worth late last year) or by the CEO, or both, was not specified.
It strikes me as odd and ingenuous to fault this company or its CEO for not putting their money where their mouth is.