21 March 2007

Hello members,

I have looked over the data on the 10Q for ATSX and it isn't impressive at all to me. My main thing was shares outstanding etc.. Well the company now has 32 million diluted shares a HUGE increase and increasing rapidly. Overnight they gained 4 million in marketcap and no shareholders took part it in.

I am still in for the StockDoubling project. My entry was at .23. I did however sell my shares that I held in my IRA and other account.

They still have to covert almost 9 million H shares which could be between 9 and 13.5 million more shares outstanding. On top of that the $300k in dividends they owe which may turn into another 1.5 million shares. (my thoughts) The executives they paid almost a 1 million shares. The company program which still has a couple million more shares to go.

Plus the company has some balloon type loans that will be due later this year which is more debt and possible more shares outstanding.

I would think that within 6 months the company will have 40 million shares outstanding and x .50 which is about where I need it to go that is a $20 million marketcap. The company should do $25-$30 million for the year so that isn't that good of deal. Especially for a company whose profit margin as so small. Not including the reversal of dividend payments they only did like $20,000 in net profit. Well on 32 million shares that isn't much.

The revenue growth quarter over quarter wasn't as good this quarter either. Only $500,000 over last quarter or 7%. I understand they won't grow 100% every year. But put that out a year and 2008 could only be $30-$35 million in revenue based on that. (By that time they could have 50+ million shares)

The company gave no guidance in there Tuesday followup. And didn't state whether record revenues were continuing in the 3rd quarter. All signs of possible red flags.

I don't like the fact that the company and higher ups are getting big returns while the stock has held steady.

I sold my positions that WEREN'T part of the StockDoubling project. I still own 17,500 shares bought at .23 for the project. However I may exit this trade if the stock comes to the .23-.25 area.

I did sell my other shares that I did own of ATSX for my IRA etc..

No I am not looking for another stock for project right now. I am still in ATSX and committed to it. If it goes up great but I don't like this quarter at all or the direction the company is taking with the shares outstanding. I would rather have an OUT PLAN, then be stuck in something for YEARS. They do have good support in the .20-.25 levels. I don't want to fall in love with a stock but ATSX was close thankfully this quarter knocked me out of love. LOL

I also felt mislead by investor relations. (May not be their fault) They stated the company would like to hold shares outstanding in the 22-24 million range. Well based on this 10Q they blew that out of the water and show no signs of slowing down.

I don't give advice or make recommendations. You decide for yourself I just let you know what I am doing.

Thank you

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Thank you
Steve Hoven

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