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

To: WineOh who wrote (4893)	12/23/1998 5:35:00 PM
From: fordor	Read Replies (2) \| Respond to of 7609

The analysis certainly did not help. If ARET investors were unaware of the financial conditions, it is a good time for them to become aware. Penny stocks are not for everyone. Remember folks, this is not IBM, this is a struggling little company that is refocusing its efforts. Results are not going to happen overnight. Be Good, Dor

To: WineOh who wrote (4893)	12/23/1998 9:47:00 PM
From: Mr. Jens Tingleff	Read Replies (2) \| Respond to of 7609

Does this mean that you without blinking accept that you were told 280MM shares outstanding on nov. 20 and now when the 10Q is out the reality was 100MM more ?? - Well I don't. Furthermore the two legal actions emerged (actually the important one in 4.quarter - this was not amended in the new issued 10QSB/A - only the text error on the balance compare 1996/1997 was corrected to 1997/1998) Well, These two legal actions: The only change in the Company's legal proceedings during the third quarter of 1998 is as follows: American Factors Group, LLC v. AmeriResource Technologies, Inc. - As earlier ------------------------------------------------------------------- indicated in the 10-QSB's and 10-KSB a complaint was filed against the Company and certain subsidiaries for breach of contract in the extension of credit on a factoring agreement. The Company disputes this claim in that the contract called for American Factors Group to purchase the receivables from the Company on a non-recourse basis. The Company demanded an arbitrator hearing which was conducted in mid-August with a ruling on or about September 15, 1998 in the favor of American Factors Group for principal and interest. The Company is reviewing its legal options with its outside legal counsel. Subsequent Event Industrial State Bank v. AmeriResource Technologies, Inc. - On November 25, ------------------------------------------------------------- 1998, an action was filed against the Company, in the District Court of Johnson County, Kansas, Case Number 98 C 14923, for the non-payment of a Line of Credit that had matured even though some discussions had taken place in regards to reaching some solution other than the filing of any legal action. The Company is reviewing its legal options with its outside legal counsel and may have some grounds for a legal defense against this action. For additional information regarding the Company's legal proceeding, see the Company's "Legal Proceedings" section in its Form 10-KSB for December 31, 1997. The second one is IMHO the 1.2MM$ loan - was originally due in august. In previous 10K is was stated that there was an agreement that it was due in august 1998 or when the company was able to pay. - The latter seems to have meant "able before aug 1998". Here is the cut from last 10Q on that - Somewhere else in the 10K's is the "when able" statement.: Bank Loans Note dated August 11, 1995 to Industrial State Banking the original amount of $1,500,000, secured by company assets, secured and unsecured guarantees. The note has monthly payments of $16,581 with a balloon payment of $1,355,073 due on August 11, 1998. 1,216,296 -------- Add that another 25MM shares must have been issued around oct.17 - So current outstanding is above 405MM - getting close to 90% of authorized. ------- Please appreciate that you get a honest opinion from here, I told you yesterday that I would give my analysis before opening hours today, I took the time out of a full schedule, and it was there as promised. Everyone had the time to read and decide action before opening hours. Reality check: We are not in a very good situation now!!! It's very difficult for me to see any other way for our company right now than a reverse split. A very important question to me, WineOh, is wether you posted wrong on nov. 20 or if Dustan really told you that there were 280MM shares outstanding ???? The answer to that question will be crucial for my final decision on how I'll proceed with ARET. We have accepted that FAMC was implemented at a high price 1.4MM$=2 years expected turnover - That made (and still do make) sense the synergy taken in consideration. I'm not happy with the third quarter cost increase compared to the second quarter this year - I'm not happy that the company could not explain where the block selling back in july august came from - as we can see it now - We are a lot of very loyal ARET investors, that do deserve to be treated with honesty. As ForDor said, we all know that ARET is on its way, and that it's a bumpy road - We do understand a plain explanation!!! - Actually several of us have been ready to soak shares directly from ARET if asked. Kr Jens