Stocklemon Reports on Amerityre (AMTY)
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One of the largest movers on the Over The Counter market this past month has been Amerityre. Stocklemon is “tired” of stock promotions that give investors re-treaded promises. Amerityre is nothing more than a second tier manufacturer of urethane tires used on wheelbarrows and hand trucks.
Who is In Charge Here?
The Chairman of Amerityre is Richard Steinke. In 2003, Mr. Steinke’s salary was $424,000.. OVER 40% OF TOTAL SALES.
Mr. Steinke is no stranger to public companies
Steinke was Chairman of Lew Corporation which was public and eventually went bankrupt.
Steinke was Chairman of Urethane Technologies which was public and eventually went bankrupt.
Steinke is the Chairman of Amerityre which is public and (reader must fill in the blank)
MUST READ!!! STEINKE UP TO HIS OLD TRICKS
The following article was taken from Rubber and Plastics News, a division of Crain Communication. This is one of the foremost trade journals of the rubber and tire business.
Read Here
Executive Vice President Elliott Taylor
The second in command at Amerityre is Ellitott Taylor. Mr. Taylor’s background is in the public markets, not tires. Here is a sampling of some of the companies in which he as been involved with, along with their current trading price. All information has been retrieved by 10k Wizard.
Lifesmart Nutrition (LFNU)
|
.01 |
| Wasatch Pharma. (WSHP) | .001 |
| Encore Wireless (ENCW) | .0001 |
| Lexon Technologies (LEXO) | .08 |
| Diatect Intl. (DTCT) | .24 |
| Cyntech Technologies (CYNT) | .60 (the blue chip of the group) |
It has not been a “Goodyear” for Amerityre
In 2001, Amerityre singed an agreement with Goodyear to jointly develop polyurethane automobile tires. It has been this glitter of hope for the future that has kept the stock trading over the past few years. Well, in March of 2003, the company entered into a mutual release from Goodyear as the project had been dropped. Why would Goodyear drop the project if it had any hope?
What has changed in the past year? Maybe if the company miraculously improved the tire, they could make a claim that Goodyear missed out.
While reading the filings of AMTY, we found one item that was noticeably absent:
Research and Development
The company is obviously not trading at the current price because of their financials. We thought maybe it was an oversight on our part until we called the company and confirmed our worst suspicion.
Research and Development is so marginal that it is not on the balance sheet because it is not even material to the company’s earnings or lack thereof.
These Below Quotes Come Direct From the Corporate Filings.
“The Company does not anticipate expending any substantial sums for new research
and development during the fiscal year ended June 30, 2000.”
“The Company does not anticipate expending any substantial
sums for new research and development during the fiscal year ending June 30,
2001.”
“We do not have any existing commitments and we do not anticipate expending any
substantial sums for new research and development during the remainder of our
fiscal year ending June 30, 2002.”
“We do not anticipate expending any substantial sums for new research and development during the
fiscal year ending June 30, 2003.”
What Is Wrong With This Picture?
The following is a comparison of the last quarter between Amerityre and Kik Technology. Kik is in the polyurethane tire business, the same business as Amerityre.
www.kiktire.com www.amerityre.com
The only difference between the two companies is their stock price. Both stocks trade on the OTCBB.
| AMTY | KKTI | |
| Stock Price | $12.50 | $.03 |
| Market Cap | $214 million | $750,000 |
| Trailing 3 Month Revs. | $348,945 | $990,843 |
| Loss From Operations | $786,482 | $50,956 |
| SG&A Expenses | $310,555 | $167,418 |
| Loss Per Share | 4 cents | less than a penny |
Amerityre Product Not Necessary
Tire companies have already found a way to deal with the problems of flat tires and the elimination of the spare tire.
Polyurethane is being used by some tire companies on the interior of the tires. Michelin has the Pax System which allows a car to run for over 100 miles on a flat tire. This was done in conjunction with Dow Chemical. Goodyear has a similar tire in the EMT tire line.
http://www.goodyear.com.jm/auto/about/new_technology.html
Unlike a wheelbarrow or a hand truck, the most important feature to consumers in an automobile tire is safety over durability. Therefore, the major tire companies have halted research on tires made completely of polyurethane.
Cheap Stock..look at the prices at which money was recently raised
“During the three month period ended June 30, 2003, we sold an aggregate of
157,660 shares at $2.00 per share for $315,320 cash; and 2,170,000 shares at
$1.50 per share for $3,255,000 cash.”
Coup De Gras
For all readers who are new to this stock, look at all of the hype press releases the company has put out over the past 4 years.
http://www.amerityre.com/Press.htm
Does this story sound familiar?
American Tire Corporation Announces Flat Free Automobile Tire - October 24, 2000
Conclusion
It is the opinion of Stocklemon that Amerityre will catch a flat in the near future. Its sales do not justify even having a public company and their lack of R&D shows a no dedication to any progress on future products. Cautious Investing To All.