April-May 1997 Newsletter

NEW BUY RECOMMENDATION: Ashanti Goldfields Company, LTD
GLOBAL POSITIONS - April 3, 1997
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Market Comment

We remain calm and focused on our investment strategy, that is, locate fundamentally undervalued, turnarounds, out-of-favor situations and obscure and under-followed small cap NASDAQ'S and NASDAQ BB opportunities.

As far as we are concerned, any correction in the Dow is a healthy development. We believe that a 6100-6250 is a strong possibility due to the overvalued nature of the Dow components, as well as interest rate hike paranoia created by the fools in Washington. Remember, they calculate many assumptions based upon the 1940's mentality, not the 1990's.

The government needs to address the real world and stop ripping us off. We need a capital gain tax cut -- now!

Clinton and his gang of thieves, and let us not forget the Republicans, don't really care about any tax cut because then they can't waste our dollars. Maybe with a little luck, Clinton will get impeached, and Newt will be voted out.

Keep your fingers crossed.

Happy investing, William Velmer

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Super Fast Phone and 900# Recommendations

February 4, 1997 - Major Profit Gathering Program: On February 4 - March 4 our 900# message listed all sell recommendations instituted on February 4, 1997.

  1. EMC (NYSE) recommended @ $17 on 10-29-95 sell 1/2 @ $39.00 - 129% gain
  2. IBM (NYSE) recommended @ $84 1/2 on 12-10-92 sell 1/2 @ $155 - 83% gain
  3. 500 AE (ASE) recommended @ $3.50 during 11-90 sell total position @ $14 - 329% gain
  4. 1000 TRA (NYSE) recommended @ $6.125 during 12-90 sell total position @ $13.00 - 112% gain
  5. 1500 UASI (NASDAQ) recommended @ $2.50 during 12-90 sell total position @ $9.00 - 260% gain
  6. 1500 UASI (NASDAQ) recommended @ $1.66 during 12-91 sell total position @ $9.00 - 442% gain
  7. 1000 QNTM (NASDAQ) recommended @ $16.25 during 12-95 sell total position @ $37 1/4 - 129% gain (Still hold position in 900# portfolio)
  8. FTEL (NASDAQ BB) recommended @ $1.875 on 8-24-95 sell total position @ $5.69 - 203% gain
  9. SALT (NASDAQ) recommended @ $3.375 on 2-26-96 sell total position @ $7.75 - 130% gain
  10. APH (NASDAQ) recommended @ $5.375 on 11-2-92 sell remaining 50% @ $25.75 (due to buy out by KKR) - 379% gain.

March 20, 1997 - Our 900# investors were notified to purchase gold mining shares in Ashanti Goldfields Company LTD @ $15.25 (ASL- NYSE). An extremely attractive, high quality, fundamentally undervalued, world class gold producing company. A great inflation hedge. Only gold stock that we have recommended in six years. We even get a dividend. A strong buy recommendation - See Story!

On April 2, 1997, our super fast phone investors were called and notified that they should seriously consider adding EV Environmental, Inc. (NASDAQ - EVEN) to their mini-micro cap portfolio for dramatic stock appreciation during the next 12 months. We intend to monitor 30,000 EVEN shares in our 100K master portfolio and 900# portfolio for percentage gain performance. See major recommendation.

On April 3, 1997 our 900# investors were notified to purchase EVEN - see major recommendation.

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Gold and Gold Stocks

Financial advisers commonly recommend investments in precious metals as part of a properly diversified portfolio to provide liquidity, long-term capital appreciation and a hedge against inflation. Precious metals have historically been a safe haven to stabilize portfolios during times of high inflation and economic and political uncertainty.

In the decade of the 90s, gold, platinum and silver belong in every investment portfolio to provide diversification and long-term stability. Because precious metals prices are driven by the same supply/demand factors that influence other commodities, and also react to inflation, political tensions and economic uncertainty, investments in gold stocks offer opportunities for both short-term speculation and long-term capital appreciation.

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Snake Bits

  1. Stocks that look extremely attractive: ORBT (2.225), HIAI (.25), CVDE (1.75) - reported excellent year end revenue and earnings.
  2. SEQS's annual reads great - looks attractive ($2.18).
  3. Digital Equipment (DEC) looks super cheap at the $25 - 26 level.
  4. Shinawatra Computer & Communication (Thailand) @ $4.00 looks like a steal.
  5. We also like EGLS, UTEK, EPLTF, WALB.

GLOBAL POSITIONS - April 3, 1997

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In order to stay in line with SEC guidelines, S.A. Advisory may buy, hold or sell positions in all securities recommended. The portfolios are all hypothetical in nature. It is likely that all recommendations were purchased prior to the recommendation. We may buy additional shares or may sell shares at any time. S.A. Advisory's portfolios are geared towards sophisticated investors aiming for long-term capital gains. Our trading habits may vary at our own discretion. Most recommendations are based upon strict fundamental analysis. Usually revenue and earnings EST for low priced common stock result from management discussions.

Copyright © 1997 S.A. Advisory