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

To: Goulds who wrote (4637)	3/30/1998 2:18:00 PM
From: Goulds	Read Replies (3) \| Respond to of 7054

Repost, Yahoo: From Individual Investor Online, March 27th Defending Actrade: Don't Believe what You Hear on the Net: Buy (3/27) This will be our final update concerning the false rumors and propaganda surrounding Actrade (ACRT). Actrade's management has emphatically stated that the company's accounting policies strictly follow all U.S. GAAP and FASB accounting guidelines. In order to be selected as a Magic 25 stock, Individual Investor performed an extraordinary amount of due diligence and found no accounting irregularities. Actrade is currently in a classic "bear trap," beaten down by short sellers using the Internet to spread rumors and innuendo about the company. After the dust settles and Actrade starts to trade on its intrinsic fundamentals, the bears could get squeezed out, putting substantial upward pressure on the stock. Over the last few months, anonymous electronic tipsters have made a series of what we believe to be unsubstantiated claims regarding Actrade's accounting practices. As we've reported, we've not been able to corroborate any of the short's claims. The latest short seller is Key West Securities, an obscure Texas-based brokerage firm. We tried repeatedly to contact Key West's Anthony Elgindy regarding his concerns about the company. At a minimum, we hoped he could at least provide us with a copy of his report to determine his investment thesis. Unfortunately, our numerous phone calls have gone unreturned and no report has surfaced. We dug further into Key West and think investors should be aware of Mr. Elgindy's dealings in the investment community. He is currently involved in a high-profile spat with the Jordan Belfort, the former head of scandal-ridden brokerage house, Stratton Oakmont (Stratton Oakmont is under Federal investigation for it's "chop-shop" practices, for allegedly hyping penny stocks, only to dump them at a high price on less-than-savvy investors). Belfort is said to be a minority investor in Key West Securities. More troubling, though, is Elgindy's run-in with the NASD. Last December, Business Week reported, "In September, Elgindy settled NASD charges of alleged trading abuses by consenting to a fine and one-year ban as principal of a brokerage firm." The article stated that one of Elgindy's colleagues, Robert LoRusso, had asserted that "Elgindy misappropriated funds and failed to disclose regulatory problems." In 1993, while with another brokerage firm, Elgindy was involved in an aborted IPO that was denied by the NASDAQ due to the prominent role played by a disbarred broker in the deal. Though Elgindy escaped legal action, we believe the incident again highlights the nature of his financial dealings. We are in the business of picking stocks through old-fashioned fundamental analysis and legitimate short sellers provide a valuable service by uncovering overvalued stocks. But the relentless pounding of Actrade by short sellers who hide behind aliases and offer no evidence behind their opinions, is unfounded. ACRT: Quote \| Profile \| Research This Is a Reply to: Msg 4977 by delkil View Replies to this Message <- Previous

To: Goulds who wrote (4637)	3/30/1998 6:31:00 PM
From: Goulds	Respond to of 7054

Repost, Yahoo: Questions and Answers From Individual Investor's Yahoo Chat on March 25th 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: Quote \| Profile \| Research This Is a Reply to: Msg 4976 by delkil View Replies to this Message

To: Goulds who wrote (4637)	3/30/1998 6:32:00 PM
From: Goulds	Respond to of 7054

Repost, Yahoo: From Individual Investor Online, March 27th Defending Actrade: Don't Believe what You Hear on the Net: Buy (3/27) This will be our final update concerning the false rumors and propaganda surrounding Actrade (ACRT). Actrade's management has emphatically stated that the company's accounting policies strictly follow all U.S. GAAP and FASB accounting guidelines. In order to be selected as a Magic 25 stock, Individual Investor performed an extraordinary amount of due diligence and found no accounting irregularities. Actrade is currently in a classic "bear trap," beaten down by short sellers using the Internet to spread rumors and innuendo about the company. After the dust settles and Actrade starts to trade on its intrinsic fundamentals, the bears could get squeezed out, putting substantial upward pressure on the stock. Over the last few months, anonymous electronic tipsters have made a series of what we believe to be unsubstantiated claims regarding Actrade's accounting practices. As we've reported, we've not been able to corroborate any of the short's claims. The latest short seller is Key West Securities, an obscure Texas-based brokerage firm. We tried repeatedly to contact Key West's Anthony Elgindy regarding his concerns about the company. At a minimum, we hoped he could at least provide us with a copy of his report to determine his investment thesis. Unfortunately, our numerous phone calls have gone unreturned and no report has surfaced. We dug further into Key West and think investors should be aware of Mr. Elgindy's dealings in the investment community. He is currently involved in a high-profile spat with the Jordan Belfort, the former head of scandal-ridden brokerage house, Stratton Oakmont (Stratton Oakmont is under Federal investigation for it's "chop-shop" practices, for allegedly hyping penny stocks, only to dump them at a high price on less-than-savvy investors). Belfort is said to be a minority investor in Key West Securities. More troubling, though, is Elgindy's run-in with the NASD. Last December, Business Week reported, "In September, Elgindy settled NASD charges of alleged trading abuses by consenting to a fine and one-year ban as principal of a brokerage firm." The article stated that one of Elgindy's colleagues, Robert LoRusso, had asserted that "Elgindy misappropriated funds and failed to disclose regulatory problems." In 1993, while with another brokerage firm, Elgindy was involved in an aborted IPO that was denied by the NASDAQ due to the prominent role played by a disbarred broker in the deal. Though Elgindy escaped legal action, we believe the incident again highlights the nature of his financial dealings. We are in the business of picking stocks through old-fashioned fundamental analysis and legitimate short sellers provide a valuable service by uncovering overvalued stocks. But the relentless pounding of Actrade by short sellers who hide behind aliases and offer no evidence behind their opinions, is unfounded. ACRT: Quote \| Profile \| Research This Is a Reply to: Msg 4977 by delkil View Replies to this Message <- Previous \| Previous \| Next \| Respond \| View reply to this message Quotes - Chart - News - Discussion - $5 and Under View SubjectMarks Bookmark this Subject