Hartcourt Companies (fka HRCT)

[SinoKnowledge]

Free,

It is very quiet over there currently. Only time will tell.

One more positive from the 10-KSB that was pointed out to me by another long. HRCT had a negative cash flow from operations of only 2.5 million in 2000. If the various investments can only prduce small profits in each entity they can easily offset the negative cash flow of HRCT.

One more which is mostly good. The ET transaction seems to be solid. HRCT will pony up 1.5 million in cash and 2.325 million in HRCT stock and the deal will be done. ET had significant revenue and earnings last year. The only downside is that at this price it is a large number of shares. At least we are getting a revenue producing company for the stock. I hope Alan has the 1.5 million cash in the conduit as the deal is set to close in mid-April. I expect he does.