Check this out KK & Friends...
I received this e-mail that I've posted from: odem@game-master.com (Stock Pit Tips)
Subj update, AMFR
Date: 1/16/00 10:52:10 AM Eastern Standard Time
From:odem@game-master.com (Stock Pit Tips)
Amerifirst Financial Group
OTCBB-AMFR
Amerifirst Financial Group was a privately owned company that just recently
backed into the Tahoe Pacific Holding Company shell... (OTCBB-THOE). The
ticker was changed to AMFR. AMFR will submit their first report to the SEC
in the next 2-3 weeks.
Share data:
O/S: 4.7M
Float: 1.4M
Amerifirst Financial Group provides a variety of financial services. The
best way to get a handle on what they do is to go to this site:
wallstreetnewscast.com
Near the top is the CEO of Amerifirst, Jefferey Bruteyn. His photo is there
along with some other business heavyweights. This site is unique in that
there are a number of interviews with some big time gurus of the business world.
If you "click" on Jefferey Bruteyn's photo, you will be able to hear the
interview that wallstreetnewscast.com conducted with him. This will give you
an idea of the business that Amerifirst is into and where they are headed in
the future.
With the capital obtained through going public, AMFR has the financing now to
begin to do acquisitions. The first of these acquisitions is expected to be
announced on Tuesday... Amerifirst's direction is toward a business that will
conduct a wide variety of business in the financial sector. This will include
internet and media based businesses. This will start from a base of a
full-service NASD member firm. At some point, AMFR will be able to do a secondary
offering that will bring in additional capital to grow the business.
It must be understood that Amerifirst is already a well capitalized company.
With the first filing with the SEC AMFR is expected to report a +.25 to .30
EPS... this will make them one of the few profitable businesses in this sector
Internet/Financial.
As Bruteyn speaks of in the interview, the company is VERY undervalued. It
is also new to the publicly traded arena.
What of valuation? Stocks are valued at what the public is willing to pay
for the stock. At .25 EPS, AMFR should be trading at something in excess of
$50 a share given the PE that other companies in the same business are trading
at. Bear in mind that many of these other companies have yet to turn a
profit while Amerifirst is already there.
Given the forecasted numbers to .30 to .40 over the next year, AMFR should
be valued even higher. Really, this means little in today's market given the
fact that investor sentiment runs toward big name companies in popular sectors.
Why then, besides the above, is AMFR an attractive buy?
See this: AMFR has bought nearly all of their own shares (formerly THOE) on
the open market. This has been going on since before the company backed into
the THOE shell. AMFR is buying all of the stock and converting it to
certificates. There is possibly huge short position on the stock. The DTC sheets
clearly show that AMFR owns 1.3M shares of the 1.4M float. They started buying
at less than .50 and have moved the stock to the $4 range. Now, all of the
stock is accounted for. So... why then do some of the big firms continue to
sell stock (on the offer, to the public) they don't have?
Reason: AMFR is a smaller (not for long) company and the stock they moved into
was at .50 or less and has moved to $4... it would "seem" an attractive short
fundamentally. The certificates were initiated in the first week in January.
It will take 2 to 3 weeks for the stock to move through and hit the MMs on
the long side. In other words, the stock will have to be bought by the MMs
that are short in order to cover their substantial short position. This
stock can only be obtained through purchase on the open market. Now, who has
stock to sell to the shorts? Answer: AMFR who is also an MM on the stock...
You will always see "FSWC" near the bid on the stock. FSWC has all the stock
now. Where do you think FSWC will be on the offer side when some of the shorts
have to buy stock? FSWC will start selling some at $6 but will lead the short
covering much higher than $6.
More: AMFR has several powerful allies who will be moving into the stock over
the next week or two. These allies will take a position in AMFR. Some of these
companies have already been covered by AMFR in the past. Also bear in mind that
AMFR has launched a couple of successful IPOs on NASDAQ... this trend of
successful IPOs is expected to continue.
Now, everyone with experience knows that short squeezes are seldom successful
because the short squeeze is in the hands of many company investors, traders
and insiders. The short MMs will gang up on the offer and then force the
prices lower and begin the panic selling that will enable the short MMs to
cover. In the case of AMFR, they do not have to worry about investors, traders
and such to hold through any shake... In this case, the shake has occurred several
times and still the stock will not go down through $3.50. In any case, AMFR
has been there to buy the seller's stock and simply increase the amount of
shares tied up.
Over the last two weeks, the stock of AMFR has been submitted for certification.
Within 1-2 weeks, the shorts will begin to find out that they need to cover.
They simply cannot balance their books with a short position. When they cover,
they will only have one place to buy and that is from AMFR themselves.
AMFR will treat their loyal shareholders by making the firms who
have shorted the stock pay $6, $7, $9, $10+ for the stock.
Conclusion: AMFR by itself is an excellent investment in an undervalued company.
However, given this extraordinary situation with the short position and the
financial strength of the company, this presents an excellent opportunity for
the average trader and investor to make some money over the next month or two.
This is not a buy recommendation. Please do your own research.
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