ACRG The Next Big One? Message Board

STOCKTALK

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.

Microcap & Penny Stocks : ACRG The Next Big One?

ACRG 2.000

0.0%

Sep 29 11:19 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Harold V who wrote (21)	8/19/1998 9:53:00 PM
From: A. P. Farrow	Read Replies (2) of 49

Talked to the CFO. He said that the 2nd Q. earnings will be far better than those of the 1st Q. which were up significantly. These results will be announced about 9/25. He said that you might get a "bump" in the price then. He also said that last yr. was a bad yr. Their margins are low-about 1%, but are improving. A margin of 1.6% is typical for this industry. There are two problems with this co. as I see it. First is the micro-caps are about as out of favor as they have ever been. When small stocks come into favor, the stock of ACRG should appreciate. The 2nd problem is that they are highly leveraged. Their debt:equity is about 5:1. The CFO said that if the stock price ever gets up they would probably issue more shares and pay down the debt. Their debt is manageable he said. Now they choose to borrow @ 9% rather than dilute the stock. He thought that growth of 25% was sustainable for a couple of years. I think this co. is undervalued , but in this mkt. environment most small caps are. I also believe that the stock price will be higher in a yr. or two, but it will probably take some patience. For instance my broker didn't like it because it had low volume and he said that no one knows about it. Comments anyone? This thread has been awfully silent !

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next