To: Buckfa who wrote (1391 ) 2/12/1998 10:06:00 AM From: Qualopec Respond to of 7054
Here is a response I got from investor relations to an email I sent asking about recent volatility in the stock; Aharoni's stock bonus, low margins, etc.: First of all, let me apologies for taking so long to respond to you. I will try to do better in the future. The Company is doing very well and should continue to do very well, fundamentally. The trading activity is another issue...I belive we have attracted certain short sellers who have spread some negative sentiment, such as you have stated above. Mr. Aharoni did not pay himself 1 million shares but options to purchase shares based on a 20% discount to the current market value. If the Company does well and the share price goes up, Mr. Aharoni will have the option to purchase those shares at that price, $15.40 per share. Take a look at his very low salary of $75,000. He could just as easily command a much higher salary, but like all the employees here at ACRT, everyone is paid based on how they perform for the shareholders. The quarter on quarter revenue is up. $23,115,859 for the 2nd qtr vs. $20,001,585 for the 1st qtr. Even the net income improved. Net Income for the 2nd qtr was $1,084,093 vs. $952,855 for the 1st quarter. Concerning the low profits on the TAD Business, one thing interesting is that we are writing off our investment in our expansion program, which should impact our future positively. We like to think of this as a hidden investment. Even with the write-off, the bottom line wasn't all that bad, was it? The Company is doing very well. The decline is due to short sellers and their negative sentiment on the Company. We are planning to have a conference call to discuss our 2nd Quarter earnings for the period ending December 31, 1997. The Call will begin at 4:10 PM Sharp on Thursday February 12, 1998. If you wish to participate, please call after 4:00 PM: 800-659-7242, ask for Amos Aharoni. If you miss this call, you may hear a tape recording the following day which will begin at 10:00 AM sharp on Friday February 13, 1998. Thank you for your interest. Mitchell G. Menik Investor Relations E-Mail: <inv@acrt.com> Web site: <http://www.acrt.com>