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Microcap & Penny Stocks : ACRT about to move to new highs -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (1025)	12/30/1997 10:54:00 AM
From: Ryan Plovie (Hijacked)	Read Replies (1) \| Respond to of 7054

Pinkie, Can you say 8 straight quarters of growth, or how about 5 of those 8 at over 100% growth. They are growing solid every quarter. This is not just a earnings glitch, they are replicating a model and doing better everytime. The management owns 40% of the stock. They have 5-6 large investors who invested 7 million at $10 a share and cannot sell for 1 year. They have been in the investors business daily as one of the top performing stocks for the last year and a half. Professional Publications like the Individual Investor, Wall St. Transcript, Worden Report, and about another 3 I can't think of the names. People don't just pick stocks, they research them. These people have spent years building a name, they are not going to pick a stock out of a hat. Yet here you come, thinking you have stumbled on the fraud of the century. WRONG. P.S. I'M UP $2,000 IN THE LAST WEEK SINCE YOU CAME. THANKS

To: Mr. Pink who wrote (1025)	1/4/1998 10:47:00 AM
From: John Chew	Read Replies (3) \| Respond to of 7054

Valuation of ACRT. ACRT's five year growth rate of earnings has been over 60%. Let us say this continues for the next five years. Some might say their growth rate will be far higher with more infrastructure, name recognition, more industry penetration and MORE COMPETITION. Some might say the growth rate will slow down. But anyway take 5 years at 60% growth in EPS equals= 1.6 ^ 5 = 10.49. Multiply this by last year's EPS of $0.28 to get $2.94. Now do not make the mistake of putting a multiple of 20x or 30x to estimate a $88 share price. Take today's 10 year or 30 year bond yield, say 5.9%. Some might say bond yields will be 4% some might say 8% in the future. But let us go with the market's view. Divide $2.94 by 5.9% to get approximately $50 per share. I am assuming that at the end of year 5 there will be no EPS growth at all. Some might argue my assumptions are too aggressive in the beginning but too conservative at the end. Let us keep it simple. So based on THESE assumptions I would say price is below value. However, assumptions on five year time horizons may be subject to error. Remember the Russian five year plan or Clinton's global warming initiatives. But all of this means nothing after I hear that Amos Aharoni wear cheap suits and rides the subway to work. I am short after this most recent run-up and seek your advice on where to cover shorts. NEED YOUR ADVICE ON WHERE TO TAKE SHORT PROFITS!