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Microcap & Penny Stocks : ACRT about to move to new highs
ACRT 0.110-7.6%Dec 30 4:00 PM EST

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To: Mr. Pink who wrote (4729)4/1/1998 7:48:00 PM
From: Tothepoint  Read Replies (1) of 7054
 
Cute short indicator. You got a future ahead in comedy.
If your point is earnings from TAD's actually decreased over that very short incremental period you are correct. The more important question is why? Why would earnings decrease when revenues were exploding upwards over 50%?
Expenses directly related to TAD's totaled 1 million for all of 1997. Yet due to the fact "management began implementation of the next phase of it's expansion program" in quarter one expenses have already reached that same one million for half of 1998.
More important, in spite of this expansion, earnings have almost already surpassed all of 1997 by 160%.
The point being, how many companies can double their expenses due to expansion and during the same period triple their earnings. The TAD portion of Actrade will do at least this much in 1998 and maybe more!
My own opinion is nobody can predict the future of the TAD program. Four people doing the bulk of sales put up those numbers.
The company says it takes 6 months to a year to get new hires to contribute towards earnings. Almost forty people are now involved in the TAD program and 50% of their training expenses have already been included in past earnings reports.
The international trade division accounts for 80% of income and has been growing at a 50% clip for the last 3 years.
If that continues for a few more years and the new hires can be anywhere as near as prolific in sales as the existing four then this is only the beginning of what is going to be a very large company.
Good luck on your short. You'll need it.


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