AMRE.OB should rise 260% to reflect ...

... the market value of its subsidiaries.

AMRE.OB current market cap is 360,127,294 shares outstanding * $0.051 stock price = $18,366,492.

The number of shares outstanding isn't accurate on the Yahoo or marketwatch websites, you have to check the SEC statements to get the valid information.

AMRE.OB owns 51% of NAUC.PK (Net2Auction Inc) and 47% RBSY.PK (Roboserver Inc).

The market cap of NAUC is 49,154,500*$2,14 = $105,190,630, so the 51% owned by AMRE.OB are worth, at market prices, 51%*105,190,630 = $53,647,221.

The market cap of RBSY is 55,000,000*$0,47 = $26,950,000, so the 49% owned by AMRE.OB are worth, by market prices, 47%*$29,250,000 = $12,666,500.

The market value of AMRE's participations in these two companies is $66,313,721. But the market cap of AMRE.OB is just $18,366,492 as we've seen. So the stock is undervalued 3.61 times, that's why I came up with the 260% appreciation potential in AMRE's stock price.

Anyway, probably we should take into account the liabilities of AMRE, that is, without these two subsidiaries the company would be worth less than zero. Is this credible? No, I think that even without the participations in NAUC and RBSY, AMRE would still be worth something on the market, like so many companies out there that sell nothing, are just a project or idea, and still they're worth millions.

Technically speaking, the stock had a huge 2 day run up of 1316% (I got more than 1200% of that rise, the best trade ever on 3 Stocks on Fire ) and then came down a lot, about 87% at one time. Then it started building a base, NAUC did that too, and now it seems, from the technical formation and volume increase, it is set to make another speculative run.

The sector of NAUC and RBSY is very modern and innovative, they are good ideas and if they're able to succeed this stocks will indeed rise thousands of percentage points.

I see that NAUC already has 28 drop off locations (they then try to sell our unwanted goods on EBAY and collect a fee for the service - when I first bought the stock, 2 months ago, they had just 14 stores, so I see strong growth as promised by the company) and it is planning to get to 50 drop off locations by the end of 2005.

I thought NAUC's share price had dropped much more, but the stock is making a comeback and it is trading over $2 now.

Let me leave both charts, AMRE.OB and NAUC.PK.

As said, I still don't know if I'm going to buy AMRE.OB at the open, if I see a big gap up I'll pass for now ...

David Randolph
www.3stocksonfire.org


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