Trading Securities and Marketable Securities Available for Sale

3 Months Ended

Mar. 31, 2012

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

Trading Securities and Marketable Securities - Available for Sale

Note 3 - 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 March 31, 2012 and 2011, American had net unrealized trading gains of $70,146 and losses of $399,545, respectively, related to securities held on those dates.  American recorded net realized gains of $0 and $144,812 for the three months ended March 31, 2012 and 2011, 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.  On December 8, 2010, 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.  At March 31, 2012, this investment was valued at $5,460, based on the closing market price of $0.0042 per share on that date.  American recognized other comprehensive loss for the three months ended March 31, 2012 and 2011 of $2,340 and 117,000, respectively, 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.