|
$2,000 stock investment into $2.2 million; he founded TVC Marketing,
the marketing arm of Pre-Paid Legal Services Inc. (ASE/PPD), where
sales grew from $6 million to $60 million in his five year tenure.
Business/Products
AMSO sells its more than 100 natural, herbal-based nutritional
supplements, weight management products, skin & hair care products,
& cosmetics to more than 35,000 independent distribu-tors who use
the products themselves & retail them to their customers. Each product
is manufactured from exclusive proprietary formulas under strict
quality control standards. These products bear the FDA "legal label"
as to ingredients & dosage, although FDA approval is not required
for AMSO's products.
Among its best selling products are: AM-300 -- a natural herbal
energizer consisting of a specialized blend of herbs, including
an ephedra herb concentrate & chromium picolinate; AS-200 -- a natural
appetite suppressant which is a blend of herbs & nutrients in addition
to citrin & chromium picolinate; Shark Cartilage Complex -- to build
the body's defense systems -- it is made from shark fin cartilage
& a blend of curcumin, boswellin & vanadium; Super Anti-Oxidant
-- a food supplemental blend of enzyme-active & phyto-nutrient rich
whole food & herbal anti-oxidant concentrates including proanthocyanidins;
Colloidal Plus -- a natural nutritional supplement made from an
assortment of 77 plant-derived colloidal minerals in a time release
capsule; & Chlorella -- Nature's first & most perfect food made
from fresh water algae containing amino-acids of protein, nucleic
acids, fibers, vitamins & minerals.
AMSO recently acquired ToppFast, a fast-selling complete meal replacement,
weight management drink mix developed by Dr. Frank Toppo. In 1997,
AMSO introduced Choc-Quilizer, an appetite suppression product made
from a compound which occurs naturally in chocolate. Originally
developed to reduce chocolate cravings, it is believed to decrease
appetite for other foods as well. AMSO also provides an all-natural
personal care line which includes skin & hair care products as well
as the complete line of Chambre cosmetics. As an added incentive,
AMSO recently introduced its "Dial A Doc" service. This unique service
provides its qualified distributors unlimited toll-free telephone
access to specially trained physicians 24 hours a day, seven days
a week for only $4 per month. The doctors will answer all medical
questions & refer the caller if additional treatment or services
are required.
Recognizing the importance of reliable shipping requirements of
its industry, AMSO recently started using a new integrated order
entry/shipping system developed by United Parcel Service (UPS).
AMSO's customers are now linked to UPS's on-line shipping program
which can reduce order processing & delivery times by 50%.
Market
AMSO sees Baby Boomers as a significant market as both consumers
& distributors. It is adding distributors at the rate of 500 per
week -- a doubling of its network in 1998. The market for direct
sales of vitamins & nutritional supplements alone is estimated to
be $12.7 billion. Home-based businesses are growing at the phenomenal
rate of 50,000 each day. AMSO is well positioned to capture a significant
piece of this market. AMSO now has limited international presence
-- just its skin care line -- in Greece, Turkey, & Crete. It is
looking at ways to increase its foreign sales. This would provide
substantial future revenue potential.
|
Management
John W. Hail (see History above) is founder, chairman & CEO. ....
Roger P. Baresel is president & CFO. He was a consultant to AMSO
for seven years prior to joining them full time. He is a CPA, an
MBA, & worked for a Big-6 accounting firm as well as operating a
private accounting practice for 10 years. .... Harland C. Stonecipher,
a director, is chairman & CEO of Pre-Paid Legal Services. .... Curtis
H. Wilson is vice chairman. He was executive VP of TVC Marketing.
.... R. Terren Dunlap, a director, is CEO of DuraSwitch Industries,
Inc., & a director & co-founder of Go-Video, Inc., a developer &
distributor of consumer electronics products.
Financial Status (9/30/98)
Cash & Cash Equivalents: $5,580,422
Current Assets: $7,178,815
Total Assets: $10,758,623
Current Liabilities: $1,428,104
Long Term Debt: $101,942
Shareholders Equity: $9,115,823
Net Sales (9 Mos ended 9/30/98): $9,500,936
Net Income: $246,421
Recommendation
I recommend AMSO for both midterm & long-term appreciation. AMSO
has highly experienced & motivated management with a history of
successful business activities. As I pointed out in my overview,
this company is doing everything right. Its growth in the dietary
supplement & personal care industry is phenomenal, & I expect that
growth to continue.
AMSO just announced the appointment of UMB Oklahoma Bank as custodian
of its Distributor Stock Plan which allows all of its distributors
to purchase AMSO stock without fees or commissions. This fact alone
should develop sufficient trading in the shares to positively affect
the price of the stock. I say this because AMSO's distributors have
historically become shareholders. Once they begin using the products
themselves, they get enthusiastic enough to want to own a share
of this company. The fact that the number of distributors is growing
fast contributes to my conviction that here is a healthy situation.
Not only are the fundamentals and financial strength good; the
fact that the number of shareholders is increasing, & that they
are likely to be long-term holders of the stock is a technical advantage
to those who get into this situation. Everything points to attractive
long-term appreciation potential. Here are some other things I like:
- Using only FDA approved production facilities
- Baby Boomer market sure to grow
- Distributorship network growing rapidly
- "Dial A Doc" enticement looks like a winner
- Excellent distributor incentive programs
Contact
Call 800-426-4267 (ext. 4916 for Curt Wilson, or ext. 4903 for
Roger Baresel; fax 405-843-4935; or write 2601 NW Expressway, Suite
1210W, Oklahoma City, OK 73112.
...continued on next page, click here
|