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

To: Mr. Pink who wrote (6516)	8/29/1998 6:16:00 PM
From: Larry Abrams	Read Replies (1) \| Respond to of 7054

A reading of ACRT recent 10-K reveals... (1) Despite touting domestic TAD business, significant income still comes from international trade with exposure to Eastern Europe and Soviet Union To quote 10-K During fiscal 1998, ended June 30, 1998, sales by Actrade S.A. totaled $31,558,737, or 32% of the Company's total gross revenues, as compared to $14,743,695, or 33.9% of the Company's total gross revenues for fiscal 1997 and $7,689,000, or 32.3% for fiscal 1996. The increase in gross revenues for Actrade S.A. resulted primarily from the sale of computer systems and related equipment, which represents the culmination of a long-term effort to open the developing markets of Eastern Europe and the former Soviet Union. (2) Of $13.4 M in cash, $8.3M is held in Bahamian bank (see note 9) (3) Total TAD revenue and income in 1998 was $55M and $637,000, respectively. This averages to 1.1% after tax operating margin. Yet revenue and income from off-shore Actrade Forfaiting was $3.5M and $ 206,000, or 5.9%. One-third of net comes from off-shore on less that 10% of total revenue. How can this disparity in profitability be explained? (4) $55M in TAD revenue (which is the difference between what Actrade gives to traders and what it gets from its bankers. Yet, what is the total gross $ flow of TAD transactions? Alternatively, what is the average % Actrade gets on each transaction? Say, at best, they get 4%.(which would be great because they basically sell the TAD before they buy it) This means that total $ flow of TADs to be $55M/.04 = $1.375 BILLION in flow. Yet, is this flow consistent with a few 5000 ft offices scattered across the country. Kudos to you Mr. Pink..for your calls. However, you are at your best when you present analysis based on close readings of the 10-Qs and 10-Ks and hurt your credibilty when your resort to crude commentaries like your "Triple Turd Awards" Stick to the high ground MP.