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

To: Andrew Q. Viet who wrote (1413)	2/12/1998 10:58:00 PM
From: Zhaohui Chen	Read Replies (1) \| Respond to of 7054

Conference call highlight: (continued) 6. Sinking stock price. Aharoni said the company would not buy back stock in the near future in order to give the stock price a shot in the arm. He said several times that he is not a Wall Street person but a businessman who is intent on growing a business. He pointed out two things that some of the callers seemed incapable of grasping: (a) the price of the stock in the long term will be determined by fundamentals -- if the company takes advantage of the opportunity before it the stock price will go up; and (b) his financial interest seeing the stock price go up is greater than any other shareholder's -- all his wealth is tied up in company stock and as the stock has lost $10 a share since the beginning of the year he has lost $25 million. 7. Rumors. Several callers brought up the rumors on the internet. Company policy is not to dignify them all with response. Aharoni was candid about financial problems more than a decade ago in Israel. The corporate lawyer jumped in to repeat that bankruptcy is not unknown among American entrepreneurs. Aharoni also denied the rumors about the need to restate earnings. His specific words were: "ridiculous" and "absolutely no" and he hasn't heard anything like this from his accountant. 8. The future. Aharoni said that successful companies need three things: (a) a good product; (b) financing; and (c) a network to sell the product. He thinks that Actrade has a great product with the necessary financing. He and the rest of management are now in the process of building that sales network. My general impression was positive. Aharoni was clearly focused on building the company for the long term rather than looking for gimmicks to give the stock a quick bump. He didn't equivocate when it came to denying the rumors. And in listening to him and the corporate attorney I can see why they don't want to get in the business of responding to each and every charged aired on the internet -- it alls smacks of being asked to answer the question of when did you stop beating your wife. Final impression. I think a lot of the callers -- especially those irate at the falling stock price -- would benefit from reading the annual report and the 10-Qs and 10-Ks. Many people seemed unfamiliar with the company they own.