To: Goulds who wrote (4451 ) 3/26/1998 7:35:00 AM From: Goulds Respond to of 7054
Repost, Yahoo:Q & A from Individual Investor's Yahoo Chat Session About the Magic 25 last night Q: Some analysts have lowered acrt to a "sell". If the rumours surrounding the price drop are false, what is the reason for this rating? Individual Investor: The firm, QS Securities, had a SELL rating on the company because the term (delkil note: I think they meant to say "firm") was short actually. But there was no reason, there was not even any research on the company behind it. They were trying to push the price of the stock down." Question: Do you think ACRT is down because of the shorts and the negative talk on the internet? Individual Investor (EF): Yes, that's the basic reason why the stock went down. We speak with management on a weekly basis, and we're trying to read their financial statements. There's nothing wrong with the company, and the price went down mainly because of the rumors on the Internet, on Silicon Investor. Individual Investor (TB): ACRT is caught in a classic bear trap. The short sellers are spreading rumors across the internet with no supporting evidence whatsoever. Once these rumors are dispelled for good, and the stock starts trading on the fundamentals, the bears will have to cover their short positions, driving the stock higher. Q: Do you expect ACRT to meet or exceed the .50 EPS for the year? Individual Investor: Yes, we expect the company to meet their estimate of 50-cent EPS for the year, with revenues of more than $100 million." We expect the next quarter to be strong, with earnings of about 14 cents per share, and revenues of more than 25 million, which is triple from last year." Q: Given his history, can ACRT's C.E.O. be believed? Individual Investor: "We have met with ACRT's CEO many times over the past four months, and he has been very straightforward about his past, and that any liability he incurs has nothing to do with the financial status of ACRT" ACRT: