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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: Keith A Walker who wrote (6969)3/16/1999 7:40:00 PM
From: Z man   of 7054
 
I don't think it would be that easy. We would need to see some sort of consistent quarters with the same available credit. This won't actually happen due mainly to the extra ordinary growth we are currently experiencing. The company will continue to add bank lines. The ING announcements are very encouraging, however I would expect more to be added either with ING or another financial institution in the near future.

As for trying to calculate some Revenue projections, the difficulty lies with not knowing how long the average TAD's are. As an example if every TAD was just 30 day's then you could assume a rollover of the lines 3 times a quarter, if they are say 45 day on average then the line would be rolled over 2 times....etc. I assume the company would prefer to have the time period of TAD's as short as possible. There are two reasons here. First, they are less risky. If you have done a proper credit check, chances are extremely good you will not encounter any defaults in such a short period. Second, there is a fee of 2 1/2 % that the company receives on every TAD. That is where most of the TAD earnings come from. So logicly you want to write as many short term TAD's as possible.

Hoped this answered some of your questions...

Regards
Zman
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