SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Rational Analyst
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: HeyRainier who wrote (1063)6/5/1998 2:00:00 PM
From: Doug R  Read Replies (1) of 1720
 
Rainier,

I apologize if you have taken offense to my post concerning your post about me. I did not mean to offend you as I am sure you did not intend to offend me.

Here are some interesting #'s on ACRT:

ACTRADE AND LONDON FORFAITING (R) sschreib__97
(54/M/Mo) Jun 5 1998
6:49AM EDT
We can look at a comparable company in the same business in
international trade. London Forfaiting is a public company trading on
the London stock excahnge, which is engaged in international trade. They
deal in all aspects of international trade and finance transactions
through bills of exchange, another name for trade acceptances. They do
not have electronic settlement, so their cost structure is higher than
Actrade Capital's. We used $1.61 = 1 British pound for comparative
purposes.
..................................Actrade.........London Forfait.
Total Revs fy 97..................$43.5 mil.......$3.7 Bill......
Total Revs fy 96..................$23.8 mil.......$3.0 Bill......
revenue growth rate................83%..............23%..........
net profit margin..................4.4%.............1.7%.........
earnings growth rate...............151%.............11%..........
Trade Acceptance Rev...............$21.7 mil........$2.7bil......
Trade Acceptance Growth rate.......171%.............40%..........
DEBT...............................0................$1.0 billion.
Debt to Equity ratio...............0................2.66 to 1....
return on equity...................38.9%............20.5%........

Obviously London Forfaiting is much larger than Actrade. This gives some
idea of how big Actrade can get and how long it can keep on growing.
Remember London Forfaiting is only one trade financing companyout of
many. It is a very big market.
Actrade's challenge will be to manage its growth. In our comparison,
Actrade has the obvious advantage of starting from a lower base in our
growth comparison. However, they are performing exceedingly well. Look
at the net margins. Actrade has 2 1/2 times London Forfaitings margins.
Electronic settlement plays a real role in reducing the cost of
collection.
London Forfaiting is able to maintain a reasonable growth rate only by
borrowing heavily. Actrade has no debt. They have several lines of
credit available, if they choose. However, because the TAD is a
negotiable instrument, they can collect TAD's in $5 million tranches,
vend them to a third party at LIBOR plus 2% and invest the proceeds at
LIBOR until the next deal. That gives them a marginal cost of funds at
2% and allows them to grow as fast as they can educate the public and
do
the deals." ACTRADE AND LONDON FORFAITING (R) sschreib__97
(54/M/Mo) Jun 5 1998
6:49AM EDT

Doug R
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News