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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 (4540)	3/29/1998 3:40:00 PM
From: Mr. Pink	Respond to of 7054

Gee Andrew, you have been so kind and polite to Mr. Pink, He cannot think of anyone He would rather help make money. Nevertheless there may be others who have been following the AHG fiasco so here are Mr. Pink's thoughts: AHG has always been a risky proposition as it is a company with miserable current management. Higby, the C.E.O. and George Argyros, Chairman are both knuckleheads, par excellence. That team has successfully run AHG into the ground during the sales process over the last 9 months. The upside is that the company is trading at a modest multiple of EBITDA, maybe 6.8X estimated EBITDA of 150MM. If new management is brought in and the margins are improved, this is an excellent turn-around opportunity and could be mega mover over the next couple of years. If on the other hand, Existing management stays in control, and EBITDA drops to 125MM you could have a stock worth only a few bucks. There is a board meeting on Tuesday and there should be an announcement about7--10 days later about a possible new buyer after the JLL breakdown. You might consider waiting to buy ACRT after another deal is announced although you should be prepared to pay 25-40% more if a new deal is on the table. Or you could take a shot now and create the stock cheaply but understand there is still downside if no new deal materializes. Best of luck, Mr. Pink