September - October 1997 Newsletter

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Market Comment

We remain fully invested, but have harvested fully valued stocks that have been appreciating quite handsomely during the past few years. (See latest sell recommendations in current newsletter and April-May 1997 edition). We have an appetite for low-priced mini-micros, out-of-favor technology that appears totally unloved and, of course, we are now eyeing Asian markets for over-sold opportunities. Asia has had a moderate meltdown. We, of course, smell and enjoy the carnage.

U.S. economy is showing signs of less vigor - should cool inflation and interest rate fears. The opportunities listed in this newsletter, in our opinion, all are very unique and, of course, offer excellent diversification and very promising upside potential near term. Our latest group of mini-micros during the past two months have been eye-popping. We believe that we can continue our streak.

Happy investing, William Velmer

Buy & Sell Recommendatins via 900# and E-mail Service

Note: Our 900# has been discontinued and been replaced with a more efficient service and free number: 1-888-711-7338. In order to access this number, you must call 1-614-439-7375 and pay a $10.00 setup fee. Once your account is opened, you will be entitled to review our updated messages (at least one to two new messages a week). The same charge for our service will be instituted; that is, $2.00 per minute. The calls are usually 9 - 10 minutes. You, of course, can hang up at any time and are only charged for the time spent. This service is a must for SA Advisory followers. We update this message frequently and add a unique spin on our recommendations. BEFORE YOU READ IT - YOU SHOULD HEAR IT!!
  1. July 10, 1997 - 900# and E-mail subscribers informed to sell total position in Templeton Russian Fund (TRF) @ $61.69. We initially recommended TRF on September 24, 1996 @ $19.37 ( we have taken in account the $2.37 distribution). Our overall gain: 222%. (REAL SHORT TERM GAIN).
  2. August 6, 1997 - 900# and E-mail investors were informed about Computer Device (CTDVB) @ 40¢. See Brief.
  3. August 9, 1997 - 900# and E-mail subscribers were informed that ACT Networks @ $13.25 will be monitored in our 900# portfolio for percentage gain performance. See Recommendation.
  4. Also on August 6, 1997 - 900# and E-mail subscribers were informed about INTK at 15/16. We have featured this opportunity in the past and is currently monitored in our 100K Master Portfolio. (See November 96 for complete portfolio up to November 1996. All recommendations after November, 1996 can be followed in this current letter. See Brief.
  5. On August 20, 1997, we featured on our 900# and E-mail services a unique and compelling story on a must own at current prices. See story on GEGI located in this edition.
  6. On September 2, 1997 E-mail and 888# investors were notified and reiterated attractiveness of SETO. See Story.
  7. Major sell recommendation on select issues that we feel are over extended and too popular.

On September 2, 1997, our E-mail and 1-888-711-7338 subscribers were notified of our major sell programs.

  1. NBR (NYSE) recommended on 1-10-92 @ $6.125, currently $34.44, for an overall gain of 462%. We think the group is richly priced and way too happy. We will take our profit without looking back (Long-term gain).
  2. EGLS (NASDQ) recommended on 4-2-96 @ $15.75, currently $31 7/8, for an overall gain of 102%. We think EGLS is overpriced when one considers losses and revenue drop. We believe that things will pick up, but the stock has already reflect that. Too popular. We say “bye-bye!” (Short-term gain).
  3. ESCC (NASDAQ) recommended on 4-11-94 @ $19, currently $30 1/8. Again we will take the 59% gain. We think ESCC is fairly priced. (Long-term gain).
  4. TRPS (NASDAQ) recommended on 6-1-94 @ $5.00, currently $16 1/8. Again we will take the 222% gain. (Long-term gain).
  5. FOIL (NASDAQ) recommended on 6-28-91 @ $5.625 (1/2 position remains), currently $16.00, for an overall gain of 184%. Again, believe the oil segment is overpriced, not because of the asset, but because the shares are fully valued for now. (Long-term gain).
  6. ATV (AMEX). We have two positions and have chosen to sell one of them. Our first position was recommended on 8-23-93 at $1.44. Currently the valuation is quite tempting, that is, $6.50 for an overall gain of 351%. Remember, profit is our motive, not marriage. (Long-term gain). We don’t dislike any of these companies, but we must stay focused and harvest our valuable crop at times in order to plant new seeds, as well as reduce exposure as opportunities become too popular. We may revisit!
If you recall in our April-May 1997 newsletter, we also harvested many stocks that delivered us huge gains:
  • 1/2 p EMC - 129% -- TRA - 112%
  • 1/2 p IBM - 83% -- UASI - 260% and 442%
  • AE - 329% -- QNTM - 129%*
  • SALT - 130% -- FTEL - 203%
  • APH - 379%
  • 1/2 p = sold 1/2 position; * = still retain one position

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