ACRT about to move to new highs Message Board

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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: John Chew who wrote (926)	10/29/1997 8:10:00 AM
From: John Chew	Read Replies (2) of 7054

With this volatility a good rule of thumb is to look at historical valuations. For example, ACRT has traded between 45/50 times last years earning to 80/85 times last year's earnings. So at $0.28 EPS for last June, 50 times is $14, while 85 times $0.28 is $23.5. These parameters have held since ACRT has introduced its TAD program. Obviously, these parameters are subject to change as well as interest rates and earnings perception. You should also note that when ACRT trades near the extremes of these parameters there is usually good new, strong interest near the top while, like yesterday there is panic or margin selling near the lows. Also, notice that from $14 to $23.25 there has been no fundamental news either positive or negative in which to justify such prices. This is the world of microcaps in a volatile market. So use "Mr. Market" as your friend, not your enemy. Paying under $15 for ACRT right now is a good price, but remember there is no law that says ACRT can't trade to $10 even with rapidly improving fundamentals. Markets can and will do anything.

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