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

To: Duke who wrote (3957)	3/20/1998 9:41:00 AM
From: patlew	Read Replies (1) \| Respond to of 7054

Duke, You seem like a nice guy so maybe you can get John to turn in his test paper as soon as possible so that the rest of us will know who these secret clients are. See what you can do, please.

To: Duke who wrote (3957)	3/20/1998 6:11:00 PM
From: John Chew	Respond to of 7054

What Does Actrade do? The answer to the Pop Quiz is.......... Actrade is standardizing a third tool between cash payment and open account for their business customers. The TAD is "like" a business to business credit card (my words) where Actrade can give their customers' customers a Pre- approved credit line for those situations when to do so is too their mutual benefit. This has several implications: First, Actrade A/Es do not "sell" TADs to their customers. A/Es have to build a relationship with their customers (the Sellers of the TAD) first to teach them how and when to use the TAD for their particular customers and business needs. Only then can their customers generate TADs with their customers (The Buyers). Of course, the Buyers will not sign if they do not see the benefit. Essentially, its Actrade's customers that generate the business. This means Actrade's business has a high degree of recurring revenue (customers will use every time certain situations/customers require it) Usually a longer sales cycle with an increasing rate of sales per customer until a certain percentage of their customer base is reached. Sellers may only use the TAD for 5% to 20% of their customer base depending their business. Think of when you use a credit card. You may use it for a fancy dinner, but not to buy a hotdog. A seller may be able to sell more product if he gives his customers a longer time to pay. This does not mean the buyer is a poor credit. His cash flows may have a longer cycle than 30/60 days. Actrade should and will do a better job of communicating their business and business model to investors in the future. Perhaps in the annual report June 1997.