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: Doug R who wrote (3367)	3/15/1998 5:03:00 PM
From: Mr. Pink	Read Replies (2) of 7054

here is a repost of Mr. pink's approach to the valuation. This is the case if ACRT were a squeeky clean company, which it is not since virtually every member of senior management has either been fired in disgrace, is a fugitive, an ex-gambling instructor or does bookeeping for seeing eye dogs. A fair approach Mr_Pink_esq Mar 14 1998 9:36PM EST Only a valuation method that values the sexy and dynamic TAD business seperately from the air conditioning vending business is acceptable. If you apply your 3.5% earnings yield model (implying a multiple of 28.57 multiplied by last quarter's $200k TAD earnings annualized (times 4), you get a valuation of $22.9MM for the TAD business. In order to get to a valuation of "25% above current level, you would get an enterprise value of $142MM thus you would have to value the air conditioner business which generates some $4MM pretax a year at $119MM or 30X EBIT. It is more like a 7X EBIT company at most and probably closer to 5X. So even by your own logic ACRT is worth $$47MM or about $5.80 per share. Mr. Pink would be interested to know why you think the air conditioning business should get a premium multiple if you disagree with the above. Best regards, Mr. Pink, esquire and member in good standing of the National Association of Business Appraisers

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