February - March 2002

Market Comment
S.A. Advisory Phone Service
New Buy Recommendation - Kicking Horse Resources
New Buy Recommentations - Westwood Corp.
New Recommendation Briefs
Lunacy Brief
Flash ·· Flash
Russian Portfolio
NYSE Orphan Portfolio
Tech Explosion Portfolio


Disclaimer: SA Advisory usually buys all recommendations prior to phone service, e-mail and newsletter recommendation on mentioned securities. The editor may buy, hold or sell positions in all securities at any time. The portfolios are all hypothetical in nature SA Advisory's portfolios are geared toward sophisticated investors aiming for short, medium and long-term capital gains. By nature, the editor is a stock trader and his trading habits may vary at his own discretion. Most, if not all, recommendations are based upon strict fundamental analysis. Revenue and earnings estimates are the foundation for our recommendations. The estimates result from management discussion. We do not intend to misinform, mislead or hype our readers. It is prudent for all investors to review all filings with the SEC (10Q & 10K) and contact management before investing. Investing in securities are inherent to risks to your financial health. If we are ever paid to produce a corporate profile, full disclosure will be made. WE HAVE NOT BEEN PAID FOR ANY OF OUR RECOMMENDATIONS.

To Newsletter Contents

January 16, 2002


Primarily this market resembles a Yo Yo! We go up and we go down. We go down and then we go up! In reality, we go nowhere. This market is not cheap anymore and I am afraid that near term we may be heading down. Most stocks are priced for a quick snap-back. We do not see it! We still have bloated inventories, little liquidity, sluggish demand domestically, as well as internationally, and a market of stock that appears fully valued when one considers esp estimates. In our opinion, this recovery may not take hold until the late third or fourth quarter of 02. To do this scenario, it is probable that this market may slide during the next few months until more convincing data becomes available.

We have taken profits from recently purchased opportunities and are in no rush to purchase mid and large caps.

We do believe that the only undervalued area of the market that offers discounted value with limited downside risk are the microcaps. This group of stocks never really recovered from 9-11 as most of the mids and larger caps bounced dramatically during the past few months.

We see opportunity in microcap techs, oil and gas, military and consumer related products. Within this letter you will find one of each.

Good Luck,

William Velmer, Editor

We are Bullish on America!

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