I called the turnaround in 1997 way too early, obviously, but ARCI just earned $0.22 in 1999, and this time it looks for real. Looks like ARCI is poised to earn $0.50(e) in 2000.
If and when stock goes up to 10+ times EPS, 1+ times sales, 5+ times EBITDA(e), or $5+, ARCI should be back in compliance with the 3 listing criteria for NASDAQ Sm Cap market with which they are currently not in compliance:
1C)Minimum earnings for latest fiscal year: $750,000 (ARCI $1.3 million)
3)Minimum float value: $5 million (ARCI $7 million)
4)Minimum bid price: $4 (ARCI $5)
The turnaround is here, and we're up 200%+ since summer 1999, when ARCI was at $0.63 or so, which was about 1 times forward EPS, and one times book, 1/10 sales.
Big money to made here, if things go according to plan.
ARCI TARGET 2000:
10-15 times EPS(e) $0.50 = $5-7.50
1.5 times sales $6 = $9
5-10 times EBITDA(e) $0.90 = $5-9
I hope I'm not wrong this time. This turnaround has taken much longer than I expected. |
