Repost:
Top:Business and Finance:Stocks:Services:Business Services:ACRT (Actrade International Ltd)
Yes, Indivudual Investor said
BUY on 3/12
brewngo
Mar 16 1998
1:16AM EST
Check out yourself. Registration is free. The web site address is iionline.com
Individual Investor said it again: BUY. They have done extensive research on it. They put their reputation
on the line for ACRT. Why? Because all rumors turned out to be false.
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ACTRADE INTERNATIONAL INC finances transactions using Trade Acceptance Drafts within the
TAD Program.
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ACRT Denies Rumors, Announces TAD Program;Buy (3/12)
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Over the last few months, negative rumors have beaten down Actrade (ACRT) shares. We constantly speak with managementregarding these rumors and they've consistently denied all allegations, saying that short sellers just want to discredit the company.
Recent rumors about a secondary offering and president and CEO Amos Aharoni selling stock to pay debts are false. The company clearly stated that they don't have any plans for a secondary since ACRT does not need additional capital at this moment. Also,
Aharoni did not sell his stock and there has been no insider selling at all.
Mr. Pink, the person who started all these rumors on the Internet, has continually posted negative messages about ACRT in order to jeopardize the company and benefit himself and other shorts. The mere fact that he uses an alias casts a pall over his credibility. These rumors have caused many investors to lose confidence in the stock, further contributing to short selling. Mitch Menik, ACRT's Investor Relations Manager, described it as a "bear raid" where short sellers are trying to manipulate the price of the stock by selling a large amount of shares -- a violation of Securities and Exchange Commission rules.
ACRT has taken steps to gain back investor confidence. The company issued a press release denying the rumors and confirming the outlook for continued strong financial results. In a further sign of support
for the stock, ACRT's board authorized a repurchase of the company's common shares. Since then, the shares have rebounded from recent lows to a recent $14.31.
In other news, the company also announced a new 12-month TAD program which allows payments of between seven and 12 monthly installments in connection with the purchase of specific equipment. Originally, the TAD program allowed clients to make installment payments of up to 6 months. ACRT management claims there will be increased demand for the TAD program, as many customers have expressed an interest in a 12-month program. ACRT also said that it secured a special credit protection policy for this program.
Management sees continued growth in earnings and revenues due to the TAD program. For the third quarter, ended March 31, earnings are expected to be between $0.14 - $0.16 per share -- a 400% increase over the previous year's quarter and up about 19% more than the previous quarter. Revenues should be between $26 million and $29 million, which is more than 370% greater than last year's quarter and about 19% over the previous quarter. Full year revenues should surge to more than
$100 million, enabling earnings to reach between $0.48 and $0.54 per share.
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