S A ADVISORY February - March 2000


S.A. Advisory
2274 Arbor Lane #3
Salt Lake City, Utah 84117


AGBG - the company manufactures and sells machines related to bags used in the agriculture industry to store feed for livestock, grain and other products. Book value .80 - 9 months revenue $28.4 million and .11 net/share. 12 million shares fully diluted - 6 million in float.

NOTE: press release for October 14, 1999 - extremely bullish.

Select Financial Data
    96A 97A 98A 99A (9mos)
Sales   22.9 mil 20 mil 27.7 mil 28.4 mil
Income/sh.   .03 .32 .06 .11

For the 3rd Quarter, September 30th
    1999 1998
    $12.8 mil $9.6 mil
    .07 .04

We rate AGBG with a STRONG BUY recommendation! I would like someone to show me a 40¢ stock that has earnings of 11¢ for the 9 months on sales of $28.4 million. This stock should be trading @ $1.50 - $2.00, not .395!! This result does not even include the fourth quarter! We see very little downside risk in this investment opportunity. The stock is trading at 1/2 book, PE of around 5, PSR of around .14!! Long term this opportunity should reward us many times over. We will monitor AGBG within our portfolio for percentage gain performance. In our opinion, AGBG also looks like a takeover candidate.

RINT - Another shell - some rumors have moved shares higher than lower. We would be a seller at .25 and a buyer at .10 or less.

SETO - We initially sold 1/3 at $1.50 last March when some e-mail hyped the deal. Mr. Pian continues to grow the company. Last quarter we still had losses. From December 16, 199 press release he has grand plans. At .30 or so we might get aggressive.

AFPC - Recommended within the Nov/Dec 99 Newsletter - has come to live, as most mini-micros have exploded during the past 30 days. Strong core holdings. We would not pay up!

FLOUR CITY - recommended within the Nov/Dec 99 Newsletter. It has almost doubled for us. This is a great investment opportunity and we believe that higher prices are likely. The Kon-Lin Letter recently recommended FCIN. It was also featured in Dick Davis Digest from SA Advisory. It would not surprise us if this was not bought out either. This is a super cheap stock based upon fundamentals and revenues and earnings estimates. STRONG BUY.

OSCR - again featured as a speculative internet play. Still waiting for filing with SEC and revenues and earnings clarification. We have a hold on this situation and are nervous!


FRTI - If FRTI hooks up with a major portal, this stock heads for Mars. If FRTI is bought out, it could reach $20. If a major information portal needed a free quote service or even a company that wants to have a ready-made presence, FRTI is a great package! The stock has been basing for almost 6 months, the company does not promote or hype itself, and many still do not know that it even exists: takeover or partnership with major portal yields higher prices. We rate FRTI with a strong, but speculative BUY recommendation.


NSTG - Norstar Group - NSRG - fully reporting with the SEC. We like the internet site - A Baby Yahoo site!

Also working on IVR (internet virtual reality products); has filed 10SB; 15 million shares fully diluted; a great speculation - could catch fire in 00 - we own it! We will monitor 10K shares for a percentage gain performance - current price .67. Rated: speculative buy for players. Recommended on December 28, 1999 @ $.47. Recent press looks great. Accepted by AMZN, AOL and Disney Associates Program. The site is very useful and is a portal consolidator. This stock looks and feels like higher prices!


ACRG, Inc. is engaged in the wholesale distribution of heating, ventilating, air conditioning and refrigeration equipment and supplies.

1. fully reporting with SEC
2. fully diluted - 10.6 mil/float 6 mil
3. book around $1.00 or with goodwill .50
4. sales - six months ends August 31
      99 98
  Sales   $71 mil $65 mil
  Net income/or (loss)   .20 .14
Great core holding for more conservative speculator.

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