AMHI - A Merger Imminent?

A March 21st AMHI shareholder letter went largely unnoticed in the investment community.  One that implied a merger could be on the way, one that would add significantly more value to the stock, and provide a significant boost to shares.  Read that shareholder update here:  http://www.americanhealthchoice.com/articles.cfm?art_ID=77

AMHI  has sat stagnant for well over a year, languishing in the $.001-$.003 range.  In the company's last quarterly filing they boasted assets of $9 million and annual revenues of over $6 million.  I think its safe to say those numbers aren't quite as high these days as back then but even if they are half of what they used to be, this stock should be trading well into the pennies.  The outstanding share count is somewhere close to 100 million and the authorized shares are 200 million.  Both very reasonable numbers for a stock that could trade well over $.01.

The shareholder update a month ago has really added some fuel to the fire.  So not only is this company undervalued on its own, they are also looking to merge with another company.  They have a big piece of cheese to lure some prospective companies in the form of a $6 million tax loss carry forward.  This is take verbatim from the update last month:

We have recently started looking for a strategic partner to merge with.  We have a tax loss carry forward of nearly 6 million dollars, which has real value.

That tax loss carry forward could turn into a nice lure, which will ultimately land the company a big fish.  A merger would certainly bolster shares immediately.  This is where we want to be, looking at these stocks before the merger actually hits the wires.

We know AMHI is looking for a merger, we know they have a big bone to lure a company to merge with, and we know they still have operations that at once time pulled in $6 million plus a year in revenue.  All these pieces add up to a stock that should be trading at much higher levels.  Add AMHI to your watch list.  It is going to be an interesting year for this stock.