John: ACRT reported thru its SEC filings that devaluation of foreign
currencies will have adverse impact on its current operations:
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From Actrade's 10Q1...
"For the first time in the Company's history, the major portion,
over 57%, of the Company's revenues are derived by Capital
($11,505,082 during the first quarter of fiscal 1998), with Actrade
S.A., the Company's international trading subsidiary, representing
slightly over 33% ($6,673,976) of the Company total gross revenues
for this period.
" ...it is likely that any significant decline in buying power of
foreign currencies will have an adverse impact upon Actrade's
present operations. Although no assurances can be given, management
believes that by utilizing its foreign network both to promote new
sales of American products and as a source of comparable, less
expensive foreign made products, the Company will gain the
flexibility needed to meet changing product demands over the coming
years."
And from ACRT annual report...
Market Segment Amount of Revenues for Fiscal Year
by Area 1997 1996 1995 1994
-------------- --------- ----------- ----------- -----------
Middle East $5,321,000 $4,350,000 $3,643,911 $3,683,269
South America $4,568,326 $3,424,000 $2,926,184 $1,529,580
Europe $9,005,109 $5,300,000 $2,652,436 $3,365,000
Far East $2,100,000 $1,750,000 $2,387,653 $1,490,000
United States $21,791,000 $8,112,000 $3,975,464 $1,232,485
All Others $713,877 $ 920,985 $ 830,156 $ 825,134
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Did you take the above factors into account while computing ACRT's
earnings projections? Perhaps a revision may be necessary.
Ben |
