Pink Sheets

This is an interesting stock which will become an unsolicited quotation. AMTEX (website) sells used textile equipment into Bangladesh, such as these 18 Karl Mayer knitting machine. They filled out a 15c2-11 information statement (explanation) to... not the SEC but the Pink Sheets LLC, and a tradability opinion from their lawyer, and a Q3 financial statement and they're ready to be listed on the Pink Sheets as of today! The primary venue is "Other OTC".

So far, there's no quote, no bid, no ask, no nuthin. Perhaps tomorrow.

Their financial statement shows that they actually made money in the first 9 months of 2005. They're incorporated in Oklahoma in 2000. Shamee Gafur is the CEO... and CFO.

Shameem A. Gafur has over 21 years of extensive experience in both international trading & textile manufacturing. Mr. Gafur is the founder of Arman Dyeing and Finishing Mills established in 1983. Under Mr. Gafur's guidance Arman Dyeing became one of the top ten Dyeing and Finishing Mills in Bangladesh in 1987. Mr. Gafur graduated form [sic] California State University Northridge (CSUN) School of Business Administration & Economics located in Northridge, CA. Mr. Gafur owns 2,767,500 shares of the Company.

Asma Begum is a director owning 2,767,500 shares of the Company. "Shee [sic] is very well respected in the pre-owned textile industry. Mrs. Begum brings her management experience along with her leadership capabilities."

Since the document lists Shameem Gafur and "Asthma" [sic] Begum as Control Persons, I would have assumed they're related, but "There are no relationships with any director or shareholder of the Issuer."

Kamrul Hassan is a director owning 307,500 shares. "He has put together more than ten composite textile projects established in Bangladesh and India." Apparently he's located in Bangladesh.

Tazul I. Dhali is a director owning 307,500 shares. "He is an industry consultant and advisor for several multinational textile mills in Bangladesh." He's currently Managing Director for H. H. Textile Mills Ltd. which is "one of the six largest textile mills in Bangladesh."

Also L. Peterson is listed as a Chief Advisor with "over 30 years of executive business management experience. He was a former IT consultant to Yahoo, IBM, Sun Microsystems, Hitachi." etc. etc.

The 15c2-11 statement shows they have 8.2 million shares outstanding with a float of 2 million shares and 32 shareholders of record as of Jan 11, 2006. The number of shareholders dropped from 109 on Sept 30, 2005. 6.15 million shares were issued on Sept 9, 2005 in Oklahoma for the acquisition of the California subsidiary.

"Robert Berube/Quality Tax Consulting" of Diamond Bar, CA is the accountant who prepared the financial statements. No auditing or even reviewing.

The assets are mostly machinery which is only slightly depreciated. There's also current inventory, AR, and $12,550 in cash. The current ratio is less than 1 with current liabilities being mostly AP. Equity is about 30% of total assets.

Gross margins are less than 10%. Net margins are a bit less than half of that. Net income is $73K. Cash flow from ops is $267K thanks to a huge increase in AP partially offset by a gain of nearly all inventory. Capex was about $900K which was paid for mostly by issuing 300K shares of stock for $490K and $150K note payable [to Mr. Meer S. Ali, Mr. Munir H. Khan, and Farzana Begum, paying 7% interest for 18 months ending Nov 2006].

The notes claim they're a California corporation, not Oklahoma and established in 2002, not 2000. The 15c2-11 statement explains that the operating subsidiary is the California corp (which was acquired in Sept 2005).

They claim to be the first used textile equipment supplier in the US to maintain a direct office in Bangladesh. Also buyers in India and Pakistan. Equipment comes from US, Canada, Mexico, and Europe.

They plan to immediately establish a 100% export oriented textile manufacturing (weaving) plant in Bangladesh. They plan to set up a denim mfg plant and a composite knit plant. Warren Buffett couldn't make a profit in textiles and that was decades ago before it got really competitive.

6 full-time employees.

Competitors: Gibbs International LLC (Greer, SC), USA Atkins Machinery, Inc (Spartanburg, SC), USA Republic Textile Machinery Inc (Rock Hill, SC). All are privately held.

250 sq ft of office space (about 4 cubicles?) with an additional conference room for use on an as-needed basis ("Yeah, you guys can use our conference room when we're not using it, just schedule a time with Betty"). Heh. $1,500 per month lease. They have 800 sq ft of office space in Bangladesh for $500 per month.

Etc. etc. [there are more notes, nothing stands out particularly]

So the company earned a bit less than 1 cent in 9 months. Maybe they're worth 15 cents or so per share, but perhaps we should go ask Warren Buffett about buying textile mills.