By: Dylan Sikes - AllPennyStocks.com News

Friday, October 3, 2014

According to Rental Equipment Register, the rental equipment business has really started rolling again after a sharp year-over-year decline in 2009 of 25.3 percent. In 2010, the industry was relatively flat, but has now been posting double-digit gains, including a 10.4 percent rise in 2013 from 2012. Total revenue for the top 100 companies was $15.4 billion last year, with most companies forecasting similar size gains again in 2014. Supporting the idea of continued growth, shares of United Rentals (NYSE:URI), the biggest player in the industry, are up nearly 40 percent in 2014. Chico, California-based AmeraMex International, Inc. (OTCPK:AMMX) certainly isn’t in the same league as majors like United Rentals, but the company has been reporting orders and showing top line growth. AmeraMex sells, leases and rents heavy equipment to companies in the Americas, Africa, Asia and Eastern Europe within four industries: construction (light and infrastructure), shipping logistics, mining and commercial farming.

A major component of AmeraMex’s business is the buying, fixing and re-selling equipment. Since the start of August, AmeraMex has disclosed several sales of refurbished equipment, including two container handlers to a customer in Florida and another to a customer in Mexico for an aggregate amount of $420,000. At the same time it bought a used loaded container handler. Another $810,000-deal was announced to retrofit a number of loaded container handlers with EPA-approved Tier 4 engines.

In the last week of August, AmeraMex announced a $484,000-contract to move a customer’s equipment from Oakland, California to locations in Texas and Florida and an order for forklifts valued at $350,000.

AmeraMex chief executive Lee Hamre says he’s been scouring the United States and international locations bidding on used equipment. Judging by activity in the past few days, Hamre has been winning some bids. On September 30, the company said it acquired a number of used container handlers. Purchase prices weren’t disclosed, but the handlers have an estimated value of $2.5 million, according to AmeraMex. That purchase was followed on Friday with news of the company buying more used container handlers, which have a resale value of $1.4 million. The handlers are now at the Chico facility awaiting refurbishment.

"We have already received a $300,000 order for a couple of the container handlers from a port in Mexico. The handlers are being disassembled for shipment and are expected to leave Chico next week,” Hamre said in a statement today.

For the first six months of 2014, revenue for AmeraMex was $3.88 million, up from $1.38 million in the year prior quarter. The company was profitable, although net income slipped to $281,009 from $342,206 in the first six month of 2013. Shares have responded to the improving revenue and industry demand, climbing from $0.006 at the start of 2014 to current levels of 2.4 cents in Friday trading after hitting a high of 4.9 cents late in April.

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