ACII - AmeriChip International, Inc Message Board

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Technology Stocks : ACII - AmeriChip International, Inc

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To: Ted M who wrote (945)	1/21/2008 2:21:06 PM
From: BarclayDonaldson	Read Replies (1) of 2396

Ted M: The only reason it is an issue is because no one here knows, IMO. The company has not published any evidence that they can successfully make large volume runs, not even in a test environment (i.e. there have been no reports that I have seen that say ACII successfully processed XXX number of a certain part in XXX number of hours/days/weeks/months). There have been no large volume sales as the low LACC revenues show. They have PRd quoting prices for large volume orders (I recall one back in 2003 that was for 3.5M parts/year), so people have assumed they could handle it. There is still no evidence they can, if there was we all would like to see it (well, most of us would). I would expect ACII to show up on any screening that shows drastic revenue growth. As stated to you earlier, you need to keep in mind that the revenue growth was the result of an acquisition that does non-LACC work. ACII went from ~$25k per quarter to over ~$700k per quarter, that's phenomenal growth, unfortunately that rate will not continue unless they start processing large volumes with LACC. If they continue to slowly grow the LACC revenues, we're most likely looking at more dilution to handle the debt. This company already ran out of shares once and had to R/S to continue to service the debt. They have issued restricted shares since the R/S to pay debt (according to their IR person). The feeling among LONGS is that the progress shown in the last year (finally acquiring KSI and getting LACC processed parts out the door) indicates they are close to getting the big deals. The company itself has acknowledged that they need that one big order to get them over the hump and validate the process works as advertised. Safest play is to watch for that announcement and get in at a slightly higher price. Or you can gamble and get in at a current levels and hope this process can bring in large volume orders, risking that they won't land large orders anytime soon and continue to dilute the stock as they have done in the past.

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