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: Ryan Plovie (Hijacked) who wrote (3439)	3/16/1998 4:12:00 PM
From: F. Lynn	Read Replies (3) of 7054

I think your irration is 'appualing'; but you miss the point of each issue; 1-if the patent is on the process---then would be hard to change slightly and copy--this is a business with no barriers to entry, which was my main point. 2-accounting issues--there has been no discussion b/c no one could intelligently respond to allegations by pink. why book the face value of the TAD as revenue? is it a product? since when is providing capital a 'product'? 3-I notice your lack of response to managemnt issues. all hyperbole aside, just ask yourself one question: Actrade charges about 18% annualized interest on TADs(including points). most US companies (at least larger public companies) have net margins much lower than this (about 10%, to be generous). getting a TAD for an account that will be paid in six months time essentially wipes out all profit (half of 18%= 9%, assume 10% margins and WHAMMO! profit is gone). so why would a company factor an account and in the process forgo any economic gain from that account? there are two reasons: 1-they are desperate for cash (ie they themselves need liquidity so bad they forgo profit--not a viable long term strategy) 2-they think the account might go bad and want someone else to assume the risk. TADs, at least at ACRT's current interest rates, will never be used by large companies (who can typically sell accounts rec. at much smaller discounts (2-5%))

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