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Microcap & Penny Stocks : The Hartcourt Companies, Inc. (HRCT) -- Ignore unavailable to you. Want to Upgrade?

To: Ice Cube who wrote (552)	12/16/1999 12:43:00 PM
From: fortitude	Respond to of 2413

it makes alot of sense... and the shorts are losing... the longs are winning... and i am tired of the banter with the dark side... cya at the ipo..... have fun covering, happy holidaze... laurap

To: Ice Cube who wrote (552)	12/16/1999 5:56:00 PM
From: Sir Auric Goldfinger	Read Replies (3) \| Respond to of 2413

Look at them whining about the hyped price back then, too funny: "November 20th, 1999 Dear Shareholders: First of all, I would like to thank you for your strong support . The short sellers attacked our HRCT repeatedly on Thursday and Friday, driving our price down as much as 50 percent, hoping to make an obscene profit for one day. However, the majority of shareholders refused to panic, forcing the shorters to buy back the shares at the end of theday, keeping our price stable. In the long run, all of these maneuvers would not make a difference; but in short term, it could erode investors' confidence and hurt the small shareholders. Again, I sincerely appreciate your trust and understanding by holding strong. 1. Sinobull.com: I have received many questions regarding the IPO of Sinobull.com , especially how it will affect your HRCT investment. Let me try to clarify as much as possible. First, Sinobull.com is a separate entity, in which Hartcourt contributed the shares it owns in UAC and FTL as equity. Other owners of Sinobull.com include our present partners of UAC and FTL, plus 3 more strategic partners (well-known American and Chinese companies) which shall be disclosed as soon as agreements are signed. The percentage of ownership of Sinobull.com will be 45% for Hartcourt, 21% for UAC partners, 18% for FTL partners, and 16% for 3 new partners. Based on projected revenue, net profit, market position and comparable market capitalization of other Chinese Internet companies, the investment banker estimated that Sinobull should command a $500 Million price tag on its IPO. We plan to sell 20% of Sinobull to the public by issuing 5 Million shares at $20 per share. The IPO would reduce Hartcourt's ownership of Sinobull to 36 percent, equaling to $180 Million (or $7 book value per share) in assets. It could go much higher if the public embraces the IPO as seen in other cases . Depending upon the impact on HRCT price, the Board could then decide to keep its Sinobull shares in Hartcourt's portfolio ; or to pay out all or part of it as dividends to HRCT shareholders. As for the IPO, the banker would study market conditions before deciding to list Sinobull in NASDAQ or GEM (Hong Kong) or both. We are also working with the banker to reserve a quantity of IPO shares, from 500,000. to 1 Million, for existing HRCT shareholders. 2. Innostar Joint Venture: Our JV on the wireless ISP and IP phone with Innostar would follow the same pattern. We should be able to bring Innostar IPO around March 2001. The market value of this IPO should be five times as much as the Sinobull IPO. 3. The $25 Million Equity Financing With Swartz: First of all, Hartcourt will file a SB-2 registration of the shares we plan to issue. Once it is approved by the SEC, Swartz has the obligation to purchase these shares at the market price minus 10 percent discount during the next 24 months. The maximum amount of funding will be 10 percent of the dollar trading volume of HRCT each month. Hartcourt does not have to sell these shares, if we do not need the money or if the market price is not attractive. Therefore, we are in complete control of the share dilution and the timing of the funding. Swartz has good track records of similar fundings with many larger Internet firms. 4. Hartcourt's Web Site: We promise that it will be changed by the end of this month. The contractor is awfully slow, and we apologize for it. 5. The Listing of Enova Shares: We do not expect to get the SEC comment until February, giving their present backlog of filed 10-SB's. For tax purpose, please check with your accountant if you could give Enova shares a zero value for now. 6. HRCT Float: As for the total outstanding shares of HRCT, we have issued 24 Million on fully-diluted basis as of today. Deducting my shares, insiders' shares and restricted shares, we should have about 11 Million on the float. 7. Name Change: We will stick with Hartcourt for the time being. It is sort of well-known, especially among European investors. Everybody is already familiar with our long story, with the good, the bad and the ugly. A new name would require too much time and effort to promote. 8. Our Celebration: As for the New Year party, I would like to postpone it until the underwriting of the IPO of Sinobull.com is signed. However, we will organize a think-tank meeting with our Board of Advisors and Hartcourt managers on the weekend of January 16th, 2000. Any shareholder who would like to come down to Long Beach, California and talk shop with me on this beautiful beach, please Email to my assistant at effcee@email.msn.com. We do provide free beers and frisbees. Over all, I am happy with the steady progress of the company and the strong support from the core shareholders. I feel like a child picking up a few beautiful seashells, yet knowing full well that there are millions of other treasures in the deep ocean out there. The opportunities to grow Hartcourt are endless. The huge Chinese economic wave is coming in right now, and we are the few surfers who catch it. Is that wonderful? Again, thanks for persevering. Our date with destiny is around the corner. Sincerely, Dr. Alan V. Phan Chairman & CEO