arlcf Message Board - Msg: 5375689

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Technology Stocks : arlcf

ARLCF 0.980

0.0%

Apr 13 5:00 PM EST

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To: D & G who wrote (62)	7/31/1998 1:13:00 PM
From: MThree	Read Replies (2) of 75

1. ARLCF: Revenue up 217% Gross Profit up 225% NetLoss decreases 42% SG&A decreases 13% biz.yahoo.com 2. Nortel actively marketing Arelnet product in it's IP Connect Package: a). Go to Nortel's Website: nortel.com b). Click on the Nortel search engine and input ARELNET c). Click on "Nortel: Public Carrier Networks - IPConnect" d). Click on "Arelnet i-Tone Gateway Product Sheet." If you want to hold this stock long term -- in the quartlerly reports keep an eye on: 1). Continued hypergrowth in Revenue (More than 100% Yr. over Yr) 2). Continued decrease in losses in the P&L statement and management's committment to eventual profitablity. 3). Contract awards to its IDEAL & i-Tone products and value of these contracts. Risks that I see: 1). Nortel has an option to increase its ownnership of ARLCF's subsidiary "Arelnet" within the next two years, at a predetermined price. If Nortel exercises this option, ARLCF will own just 49% of the sales and profits from Arelnet. Therefore keep an eye on how the parent company reinvests its profits from it's stake in Arelnet. It may reinvest much of it to bolster it's IDEAL products and services. So I would be concerned on how profitable or unprofitable this business segment is, since ARCLF owns 100% of this business. IMO, it's Arelnet subsidiary is a no-brainer -- good product in a hypergrowth industry, with a Goliath for a partner. The wild card is its other subsidiary in charge of IDEAL. Currently, I own a small position. Not enough to keep me awake at nights. Just enough to keep me interested to check the contract anouncements and quarterly reports. It's such a cheap stock with good potential and limited downside risk. I just couldn't resist taking a position since it motivates me to keep an eye on what Nortel's up to in IP, and enjoy the ride when Arelnet takes off and if IDEAL turns out to be lucrative.

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