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

To: Dan Packer who wrote (1682)	2/22/1998 1:10:00 PM
From: Dan Packer	Read Replies (4) \| Respond to of 7054

Now a couple of Questions: 1. What is the unique barrier to entry that the patent confers? 2. Isn't Actrade simply taking the middleman risk in a transaction where one or both parties lack financial credibility? 3. If the partners in a finanical transaction gain financial trust, why would they need the middleman after a certain point? 4. If you look at the advantages posted by Actrade (eg. cfonline.com they seem very attractive, and should be an easy sell. If you turn the problem upside down, the the risks borne by Actrade in such a transaction are formidible. Is not Actrade really in the business of managing risk? 5. Is this risk not that of international trade, covering all areas of the globe, and all products and services? 6. At this point aren't they basically managing risk by sticking to the refrigeration business? 7. When they announce the intent to open many more sales offices, aren't they implying a back office that understands and manages the risk by setting the fees appropriate for each transaction? 8. Where is that back office? 9. A perusal of the SEC filings no where indicates the number of Actrade employees. How many Actrade employees are there who work in this financial sector of the company? 10. The TAD is a catchy sales slogan for a product sold by many, many trading organizations. Does Actrade have a better way to reduce the risk of this sort of transaction? 11. It would seem that micro-knowledge of both sides of a transaction would be necessary to be successful in the business of TAD's. Does Actrade have a way to reduce the labor intensive character of collecting and assessing that credit information. 12. Once again, how many employees, and what's the revenue per employee? 13. At a time when the world seems to be moving from paper transactions to electronic, why does Actrade feature the "check"? 14. Mr. Aharoni appears to have ownership of 31% of the Actrade shares. He also has options for 2 million more shares. Since he has the effective majority ownership of shares, isn't the company essentially an embodiment of Mr. Aharoni including his past, present, and future practices?

To: Dan Packer who wrote (1682)	2/23/1998 1:27:00 AM
From: randy	Respond to of 7054

Dan thank you very much for your detailed synopsis of the ACRT system of using TAD's. Actually I now have a much better understanding of how the whole process works. The only thing I really don't understand is why the Patent office would issue a Patent for what is really a post dated check. Everyone in this country has been using TAD's since the day they opening their checking account, and they didn't even know that it could have been worth millions!! Also Dan you bring up the other question that I have not understood and that is of Risk. Who makes the daily judgement calls as to what companies are issued Tad's. And who sets the reasonable rates or discounts on these TAD's. And who can manage this across the country when many offices are opened as has been announced. ACRT has said that THEIR risk is almost nil in these transactions. Does all of the risk of default move to the Financial Institutions. This concerns me especially due to the fact that ACRT seems to target the TAD's to SLOW paying accounts that Company's may have.