ARIO.OB

[phabrux]

Dave,

from reading yours comments, I  could clearly see two different plans there:

1)you are considering to keep and hold this stock at any price because the press release will cause the stock to sky rocket to the upside where sky is the limit!.

2)you are happily waiting for the news but ultimately the market knows better and the support level 0.34,  shows the maximun pain level  you are willing to take for this baby.

Which one is yours?

I would find hard to guess which  one is yours?
Worse, sometimes between few plans, sometimes I don't chose any!
Ultimately, doing so, is leaving the market choosing for me! 
From watching your trading technique with those different strategy, I find it a great source of inspiration!   Lol

Keep up the great work!

[David Randolph]

Both 

I'm willing to wait for the press release or earnings report, but I won't tolerate a break of the $0.34 level, regardless of everything on the fundamental side.

Thanks for your post !

[irod]

Quarterly report is out: http://biz.yahoo.com/e/050822/amre.ob10qsb.html

[David Randolph]

Thanks for the link irod, I would like to highlight the following from AMRE.OB quarterly report filed with the SEC:

«On August 12, 2005, there were 59,789,592 outstanding shares of the
issuer's common stock, par value $0.0001.»

So, the market cap of AMRE.OB is 59,789,592*$0.041= $2.45M

Now, let's consider this:

«The Company's operations for the quarter ending June 30, 2005 were
primarily affected through its subsidiaries, Net2Auction, Inc. ("Net2Auction"),
and Net2Auction Corporation, RoboServer Systems Corp. ("RoboServer"), and
Self-Serve Technologies, Inc. As of June 30, 2005, the Company owned 45.5% of
Net2Auction, which owns 100% of Net2Auction Corporation. Net2Auction is publicly
traded on the NQB Pink Sheets under the symbol of NAUC. As of June 30, 2005, the
Company owned approximately 44.5% of RoboServer, while RoboServer wholly owns
Self-Serve Technologies, Inc. RoboServer is publicly traded on the NQB Pink
Sheets under the symbol RBSY.»

NAUC.PK is worth, by market prices, 49,154,500*$2.24= $110.1M, so 45.5% of this is worth $50.10M.

RBSY.PK is worth, by market prices, 55,000,000*$0.26 = $14.3M, so 44.5% of this is worth $6.36M.

Considering this AMRE.OB participations in its subsidiaries is valued, by the market, at $50.10M+$6.36M = $56.46M and AMRE.OB is worth just $2.45M.

So, to reflect the market value of its subsidiaries, AMRE.OB stock should rise $56.46M/$2.45M = 23 fold.

Not 260% as I was considering, but 23 fold according to the number of shares outstanding and the percentage of participation on its subsidiaries constant on this updated report 

So, why doesn't the stock rise immediately?

I don't know, there are two possibilities:

1) This analysis is totally wrong, the information given by the company is false.
2) We have a great inefficiency on the market, and the holding company is not valued accordingly to the market value of its subsidiaries.

Let us highlight a bit more from the 10-Q report:

«Principles of consolidation

The consolidated financial statements include the combined accounts of
AmeriResource Technologies, Inc., West Texas Real Estate & Resources', Inc.,
RoboServer Systems, Inc., Self-Serve Technologies, Inc. Net2Auction, Inc.,
Net2Auction Corporation, VOIPCOM USA, Inc., and Tomahawk Construction Company.
All material intercompany transactions and accounts have been eliminated in
consolidation.»

«NET2AUCTION, INC.

         Net2Auction has become one of the largest operators of online auction
drop-off locations by developing relationships through partnership agreements
with independently owned and/or franchised pack and ship centers. In order to
assist in growing the operations and increasing revenues, management made the
decision to utilize a proprietary software program that provides an all
encompassing system which ties in eBay, PayPal, Net2Auction, and the customer.
Net2Auction's relationship with EBay allows Net2Auction to reach millions of
potential buyers for our customers' unwanted goods.

         Management believes Net2Auction's operations and revenues will continue
to grow whereby increasing revenues each month through the end of 2005 and into
2006, which will bring meaningful revenues for the Company. Currently,
Net2Auction operates forty (40) drop-off locations in San Diego and Orange
County, California. Net2Auction's goal is to have seventy-five (75) drop-off
locations in place by the end of 2005. Net2Auction moved its headquarters in May
2005 to 10979 San Diego Mission Rd., San Diego, CA 92108. To learn more go to
www.net2auction.com.

ROBOSERVER SYSTEMS CORP.

         RoboServer continues to explore market opportunities in the restaurant
business and has uncovered several potential markets outside of the traditional
fast food arena. Although the flagship point of sale software remains
potentially a significant module to the main product line of self-service
kiosks, emphasis has migrated from the flagship POS system to new applications
and product models of kiosks. Through market research, management believes the
POS market is near saturation and RoboServer will use all available resources on
the kiosk products. The shift in emphasis to kiosk based ordering systems, while
delaying revenue generation, has uncovered an underserved market.

         RoboServer is spending considerable efforts to educate corporate
offices about its Kiosk based customer system. RoboServer has signed its first
pilot site for this new technology and anticipates the deployment of its first
finished product in late summer of 2005. RoboServer believes that within the
next two to three years, 20% to 30% of the fast food restaurants in the United
States will deploy some type of this technology to their retail outlets to
provide customer service plus accrue the benefits in labor cost savings.
Management believes RoboServer's operations and revenues will begin to generate
meaningful revenue prior to December 31, 2005. To learn more go to
www.roboservercorp.com.

WEST TEXAS REAL ESTATE AND RESOURCES, INC.

         West Texas did not have any business operations in the second quarter
of 2005.
                                       
VOIPCOM USA, INC.

         Voipcom USA, Inc. did not have any business operations in the second
quarter of 2005.»

Considering all this, I can't think of another thing to do than to continue holding AMRE.OB and hope the market sees and corrects this incredible inefficiency.

(I'm sorry not to attach a chart as I usually do, I have a problem with my Metastock database)

[irod]

It touched .039 today and it ended down at 0.04. Something's definitely wrong with this one. I wish we knew what it was.

[David Randolph]

Yes irod, I wish we knew. I would like to confirm the market cap of NAUC.PK and RBSY.PK, since I've calculated it using the number of outstanding shares multiplied by the current market price.

This is the correct way of doing it, but I wonder if there's some special rule or something regarding the Pink Sheets.

Where do we get a source for reliable information about the market cap of Pink Sheets stocks? Anynone knows? It is impossible to evaluate a company without knowing the market cap ...

Anyway, on the report issued yesterday by AMRE.OB we see the company is active and generating revenues, although they're still small. That's a progress over the last few years.

I'll continue to hold the stock for the foreseeable future, I don't think it will ever close below $0.034 and the upside potential is huge.

[David Randolph]

Nothing new on AMRE.OB, I'll continue to hold this penny stock. NAUC.PK was up 2% yesterday.

[David Randolph]

Form 10-QSB failed to inspire buyers into AMRE.OB, but it confirmed my fundamental assessions on the stock.

It's really hard to see it fall like this, but there's nothing we can do, certainly I won't buy the company 

Being down 25% on AMRE.OB what I got left is my initial trading plan, which is to hold the stock as long as it closes above $0.34 or sell with a big profit. That's what I'm going to do.

I guess it's not a big problem to lose 30 or 40% in some penny trades, regarding that one can make 100 or 200% in some of them too.

This is why diversification is so important. More than diversification, the money management rule of not putting more than 10% of the capital in one single penny stock. To be full invested on the 3 Pennies on Fire Portfolio we need to have 10 penny stocks.

[irod]

I'm in for the ride.

[David Randolph]

$0.034 is an obvious support level for AMRE.OB. The stock shouldn't be trading here, given it's assets, but there's nothing we can do, the company lacks visibility. Perhaps it is just building a solid and prolonged base before it takes off, I don't know, I'll continue holding the stock for as long as it closes above it's medium term support level of $0.034.

[somebody041]

Those are very serious allegations, stout.  Could you please provide us to the links where you got this information?

[David Randolph]

AMRE.OB rose a bit yesterday, holding the support zone. I'll continue with my plan.

[David Randolph]

I'm getting more and more ready to sell AMRE.OB at a big percentage loss (capital isn't mush, but more than 30% is always a big loss  ). Anyway, I'll take a valuable lesson out of this, that I will share with you later.

Well, ate least competitors recognize AMRE.OB, read this:

«Snap N' Sold Corp., http://www.snapnsold.com, is engaged in the eBay (NASDAQ:EBAY), drop store industry with competitors, Las Vegas based Net2Auction Inc. (Pink Sheets:NAUC), subsidiary of AmeriResource Technologies, Inc. (OTCBB:AMRE.OB), Dallas based Orbit Drop, Inc. (Pink Sheets:OBDP) and Auction Mills Incorporated (Pink Sheets:AUML) as well as other auction facilitators like the EZ2Companies.com, (OTCBB:EZTO).»

[eduardvs]

Funny how the stock is listening to you and not dropping below the .034 support level yet.  Hopefully it will bounce and you and I won't have to take that big loss.   

I'm still in from .06 (couldn't cancel my buy before it dropped). 

If this isn't the bottom, I don't know what is.

[somebody041]

If this isn't the bottom, I don't know what is.

When I read that, a sense of dread appears in my mind...

Knock on wood.