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Microcap & Penny Stocks : AmeriResource Technologies (ARET) -- Ignore unavailable to you. Want to Upgrade?

To: Coaster123 who wrote (2390)	9/15/1998 12:25:00 PM
From: TraderGreg	Read Replies (1) \| Respond to of 7609

Figure at least one point(%) on the origination side plus what ever they get for flipping the loan to the secondary market plus any revenues from selling the loan servicing(or annual revs on servicing for retaining the loan). So ,per MILLION dollars of loans originated: $10,000 origination---this would be assuming a minimal fee and does not include any rebate from the investor of the loan. $10,000 future from sale to secondary(could go higher if rates hold/fall) $2500/yr for serving the loan OR $10,000 from sale of servicing TG

To: Coaster123 who wrote (2390)	9/15/1998 6:29:00 PM
From: Mr. Jens Tingleff	Read Replies (2) \| Respond to of 7609

Beany, Re Valuation of ARET - As can be seen in 10Q's we are in deficit of 9MM$, so the value per share cannot be counted by the book value. It takes revenue of over 100MM$ to get rid of that deficit. The upside of that being that there is no tax of the first 9MM$ net earnings. For the mortgage biz, I have assessed that net earnings could be between 30 and 35% of revenue. Based on the financials presented in one of the recent filings. ARET have estimated that the first years revenues directly from mortgages is around 750K$. Another interesting thing to look at when talking about assets is the current value of the marketable securities. ARET holds securities in a couple of companies (see also recent 10Q's) - the value is far better that what is described in the 10Q, as it in the 10Q is taken up at the purchase price equal to aret swapped shares at par value 0.001c. As several others here, I do expect that one of the coming news shows a major breakthrough in the ability to show good profit, and maybe even within this fiscal year. The mortgage alone may do it for black figures - But when construction starts costs often roll in ahead of revenue - What have to be considered here is that besides building a (hopefully) long line of good low-price houses - the construction of one or two major plants by ARET/TCC, or TCC (via minority status) participating in such larger construction projects with JV partners, is definately a turnaround point, that will dramatically improve ability to add to bottom line. IMO as soon as we can see the possible profit of such activities, we can count with PE of about 5 on estimated earnings, maybe even 10 if it shows that deficit is removed within a year. Kind regards Jens