Penny Paradise selected ARET as their new pick this morning at the open. The following is the write-up that was e-mailed to members. To subscribe to PennyParadise and receive all future Paradise Picks, e-mail PennyParadise@hotmail.com with SUBSCRIBE in the subject.
Penny Paradise has recently been following the activity of AmeriResources Technologies (OTC-BB: ARET). Many good things have been occurring, but Penny Paradise wanted to do its best to make its recommendation as close to the bottom as possible. ARET, a true penny stock, is trading just above its 52 week low. Several upcoming developments could serve to move ARET several-fold from these levels.
****Amerisource Technologies, Inc.
Ticker Symbol: ARET
Shares Outstanding: Approximately 200 million
Shares in the Float: Approximately 70 - 80 million
Status: A fully reporting SEC company
Description: AmeriResource provides mortgage, consulting and construction services both within and outside the Native American community.
Current Price: .01 (bid) X .012 (ask)
ARET has had several incredible developments over the past few days. On Thursday they announced they they will be beginning a buy-back of 20% of the shares in the float, equating to 14 to 16 million shares. This was followed by yesterday's (Tuesday's release) appointing a new president, included below:
"""""Tuesday September 8, 10:26 am Eastern Time
Company Press Release
AmeriResource Technologies Inc. Appoints Dustan R.
Shepherd as President
LENEXA, Kan.--(BUSINESS WIRE)--Sept. 8, 1998--AmeriResource Technologies Inc. (OTC BB:ARET - news) chairman
Delmar A. Janovec announced Tuesday that the board of directors has appointed Dustan R. Shepherd as president of ARET.
In conjunction with his new role, Shepherd will continue with his current responsibilities as president of ARET's subsidiary, First
Americans Mortgage Corp. (FAMC). This decision is the second step - following the Sept. 3 announcement concerning the stock
repurchase - in solidifying the companies' new focus of developing business among Native American tribal entities. The board
believes these recent decisions ''will be the foundation for returning the company over the next 12 months to a profitable position
while stimulating a renewed interest and a greater value in the stock,'' said Janovec.
Shepherd stated: ''I am excited about the opportunity to take on a daily role with the parent company. My initial primary role will
be as the spokesman for ARET products and services. Currently, more than 60 percent of my time is spent on site, working with
tribal officials, government agencies, GSE agencies and other private vendors. At a time when ARET needs to finalize numerous
contract opportunities and obtain new business, I do not see my schedule changing when in fact more time on site may be
warranted.
''Because of the companies' desire to broaden our lines of communication with our current and potential shareholders, ARET has
begun to develop an Internet home page, which we project to be online within 90 days. This new marketing tool, along with our
continued press releases to the three major agencies,should allow us solid market exposure while stretching our promotional dollars
further. Additionally, I will be responding to all calls concerning ARET through my office at FAMC (913-859-9505). This may
seem unconventional for a president who spends so much time out of the office, but I feel I will be in a better position to give
current and potential investors the complete ARET picture as it unfolds.
''I also want investors to know of my past experience working for a Small Cap and Wall Street brokerage firm. During that time, I
obtained a solid understanding of each player's role in the establishment and the ongoing promotion of a bulletin-board stock. I will
utilize my market contacts and trading knowledge to assist ARET in identifying and solving trading issues. Initially, I will be
contacting current market makers and exploring my past contacts to establish new relationships in the trading arena.
''Indian Country is the last vast residential real estate market left in America,'' Shepherd concluded, ''and I look forward to leading
the ARET team in positioning themselves to take advantage of this remarkable opportunity.''
The release may contain forward looking statements that involve risk and uncertainties, including without limitations, continued
acceptance of the company's products and services, increased levels of competition, new products and technological changes. The
company's dependency on financing, third party suppliers and intellectual property rights, and other risks detailed from time-to-time
in the company's federal filings, annual reports, offering memorandums or prospectus.
Contact:
AmeriResource Technologies Inc.
Dustan R. Shepherd
Tel. 913/859-9505
Fax 913/859-9520
or
Robert Solarchik
800/913-9767
954/346-5796""""""
This seems to be a terrific move by ARET. As stated in the release, Mr. Shepherd has a lot of experience in the small-cap arena. He is very investor, and penny-stock, savvy, and will move to do anything in his power to increase shareholder value.
What's more, sources close to the company indicate that we may very well see another release this week, and definitely one next week. One of the two releases is expected to be a "BLOCKBUSTER" according to my sources.
One possible topic for an upcoming release: ARET has been in discussions with a foreign group for a two acre facility (factory). They have been working out the terms of the agreement. The financing will be provided from the foreign group. This is most likely where ARET is getting their money for the stock buy back.
ARET will be poised to gain substantially while minimizing its own expenditures because: The foreign group will be providing the machinery, expertise and management. This will take place on one of the Indian Nations, which will allow for the group to ship into a FREE TRADE ZONE, eliminate any IMPORT, EXPORT DUTIES and exempt the group from any FEDERAL TAXES once they begin to sell
their products into the market.
ARET is a turnaround company, and appears to have bottomed at current levels. Its upside potential in upcoming weeks is tremendous.
Past Stock Updates: Pacel Corp (PLRP) has been quiet, though all trading in the past two days has been buying. The market makers have moved the ask up to .50, widening the spread to discourage buying (they have very few shares). It is rumored that in the next couple of weeks, several groups will begin accumulating the stock, and a PR push begun in full swing. PLRP is still a bargain at these levels. I'll keep you advised of any updates. . .
DISCLAIMER:
This is not a solicitation to buy or sell the aforementioned securities. The writer, Patrick Gundlach, is not a registered investment adviser. The writer may hold positions in the securities mentioned herein and may be compensated for services related to the publicity of such securities. Opinions are those of the writer and should not be used as a sole criteria for investing. Reviews of companies are not a complete analysis. All information used in Penny Paradise is from sources believed to be reliable, but cannot be guaranteed. Invest in stocks only after reviewing the financial reports of the company (if available) and as always, investors beware! Thank you, and best of wishes to all.
|
