Trading Securities and Marketable Securities Available for Sale

6 Months Ended

Jun. 30, 2011

Trading Securities and Marketable Securities - Available for Sale [Abstract]

Trading Securities and Marketable Securities - Available for Sale

Note 2 - Trading Securities and Marketable Securities - Available for Sale

Investments in equity securities primarily include shares of common stock in various companies that are bought and held principally for the purpose of selling them in the near term with the objective of generating profits on short-term differences in price. These investments are classified as trading securities and, accordingly, any unrealized changes in market values are recognized in the consolidated statements of operations.  For the three months ended June 31, 2011 and 2010, American had unrealized trading gains of $316,170 and losses of $139,975, respectively, related to securities held on those dates.  American recorded realized losses of $401,655 and gains of $214,003 for the three months ended June 30, 2011 and 2010, respectively. For the six months ended June 31, 2011 and 2010, American had unrealized trading losses of $83,468 and $202,056, respectively, related to securities held on those dates.  American recorded realized losses of $259,090 and gains of $318,314 for the six months ended June 30, 2011 and 2010, respectively.

On June 21, 2010, American received as compensation for consulting services 1,000,000 restricted shares of ADB International Group, Inc. ("ADBI") common stock valued at $1,370,000, based on the closing market price of $1.37 per share on that date.  American purchased an additional 300,000 shares for $35,000. This investment is classified as marketable securities - available for sale and, accordingly, any unrealized changes in market values are recognized as other comprehensive loss in the consolidated statements of operations.  At June 30, 2011, this investment was valued at $19,500, based on the closing market price of $0.015 per share on that date.  American recognized other comprehensive gain for the three months ended June 30, 2011 of $6,500, and other comprehensive loss for the six months ended June 30, 2011 of $110,500, for the unrealized loss on this investment.

Equity markets can experience significant volatility and therefore are subject to changes in value. Based upon the current volatile nature of the U.S. securities markets and the decline in the U.S. economy, we believe that it is possible, that the market values of our equity securities could decline in the near term. We have a policy in place to review our equity holdings on a regular basis. Our policy includes, but is not limited to, reviewing each company's cash position, earnings/revenue outlook, stock price performance, liquidity and management/ownership. American seeks to manage exposure to adverse equity returns in the future by potentially increasing the diversity of our securities portfolios.