S A ADVISORY November - December 1999


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

(Broker contact: Mike Chesler @ 1-800-890-1629)
Company Symbol Recommended Price Current Price Status
Trimedyne TMED 7- 25-99/$2.03 2.09 B
Advatex ADTX 8-29-99/.15 .25 B/H
Firecom.Inc FRCM 8-1-99/.53 .62 B
Champion Parts CREB 8-16-99/.75 .81 B/H
YARC Systems YARC 1-20-99/.40 .23 B
MicroTel MTCL 5-3-99/.375 .24 B
American Nortel ARTM 1-19-99/.375 .94 H/B
LAT Sportsware LATS 1-19-99/1.34 1.41 B
Teltran TLTG 2-17-99/1.40 8.00 H/S
Payless Cashway PCSH 5-15-97/2.125 1.41 B
Precision Standard PCSN 7-23-98/4 7/8 12.00 H
Homeland HMLD 10-16-98/3.375 3.625 B
Semicon Tools SETO 7-9-97/.07 .43 B/H
Financial Performance FPCX 8-21-98/.81 .56 H
CBR Brewing CBRB 5-13-99/.41 .50 B/H
Reality Interactive RINT 7-1-99/.08 .12 B/H

TMED - cutting edge technology - the company develops, manufactures and markets Holmuim lasers that have been cleared by the FDA for use in urology, orthopedics, ear, nose and throat surgeries, gynecology and general surgery to treat a variety of diseases and medical conditions. Cardiodyne Inc., a 90% owned sub, using laser energy for making channels in the heart wall that could revolutionize the treatment of coronary heat disease - great micro-cap for diverse portfolio. See Sept/Oct 99 newsletter for complete recommendation.

ADTX - a corporate shell with 5.3 million shares outstanding with .16 in cash and no debt. Has hired investment banking firm, but see and hear nothing. Consider adding to position if and when ADTX falls to lower levels (like .10 - .15).

FRCM - a fundamentally cheap micro-cap that has very little downside risk. Book value .58, trailing 12, earnings .09, which yields a PE of 6.49, PSR of .4 and 1x book. See Sept/Oct 99 newsletter for recommendation.

CREB - re-manufactures and sells replacement fuel systems components (carburetors and diesel fuel injection components) and constant velocity drive assemblies for autos and trucks. Third quarter numbers recently released - nothing special. It is more of HOLD than a BUY.

MCTL - designs, manufactures and distributes a wide range of electronics hardware products and data telecommunications equipment. Looks like turnaround is finally in place. At current price, upside is very favorable. Recently a fund purchased 5.4% of MCTL.

ARMT - is a re-seller of 1-PLUS and 1-800 long distance telecommunications services. The numbers look great - fiscal 99 rev $17 mil and net .22, first quarter just released rev exploded to $6.7 mil from $3.1, while net income rocketed to .09 from .04 during the same period. The stock should be much higher than .90. Problems: management communication skills with investors equals a zero! ARMT also keeps wasting money on foolish acquisitions of overpriced paper in pipe dream opportunities. Too bad management doesn't understand that cash is king!

LATS - distributes and manufactures sportswear principally for the imprinted garment industry. This is a cheap stock - $3.00 book, no debt, .25 in cash, rev exploded for the 9 months while earnings during a slower seasonal period remained flat - $73 million vs. $63 million, and .26 net vs. .28 net. Bottom line - looks very cheap and is also very boring, but may surprise the patient investor type.

TLTG - a provider of international teleco service, including voice over IP, domestic and international long distance, web portal and hosting, fax broadcast services and calling card programs. Even though we have sold 2/3 of our position at an average price of around $11 during July, 1999, we still believe that management of this small and growing internet play is a CLASS ACT! Investor friendly and we like the honesty that management presents to the investment community. If and when TLTG comes down further in price, we may revisit this winner! We sold only for PROFITS! PS: we enjoy TLTG's website and still use the free quotes on occasion.

PCSH - A retailer of building materials and home improvement products in the US. PCSH operates 154 retail stores in 18 states. Trend looks positive long term. Third quarter showed .09 net income on $492 million in sales, less than comparable quarter, but this was due to closing of additional stores. Book value $8, insider buying, extremely small PSR .02. We rate PCSH with a strong speculative BUY rating.

PCSN - aircraft maintenance and modification, design and manufacture of aerial target and guidance systems, aircraft cargo handling systems, etc. Everyone hated this fundamental cheap opportunity except SA Advisory and because of this we have benefited dramatically. New Management has helped rocket PCSN skyward.

HMLD - Supermarket chain that has not been noticed by the street. George Soros, the investor, owns 13%, management has been buying constantly, acquiring additional stores, profit will be growing. Most likely a takeover candidate at $8 - $10 - super buy.

YARC - company has developed proprietary software that integrates printing technologies with the internet and internet browsers. Check out YARCÕs websites: www.yarc.com.

We are and remain intrigued concerning this mini-micro. We like management and believe that the company will be successful. Very speculative. Check out the sites.

SETO - primarily manufactures and/or distributes industrial ceramic products, small disposable diamond cutting tools and cellular telephone and other rechargeable batteries. We sold 1/3 @ $1.50 on or about March 14, 99 - initially recommended @ .07. Profit was our only motive! Actually, we are impressed with management. It is very difficult to be a small micro-cap that is usually under-followed and under-funded. Mr. Plan keeps pushing hard and, in our opinion, SETO will reward the patient investor. During the tax season SETO may drop further. Be ready to claim your prize!

FPCX - The stock is like a beautiful woman who has no brain. This deal looks great, but management has little interest in shareholders. Management only cares about lining management's pockets. We are sorry that we ever got involved. It is not a sell, but would not buy unless management wakes up! Mr. Finley, answer the phone!

CBRB - Brews Pabst Blue Ribbon Beer within China. Rev for the nine months $97 million and net of .29 ending September 30, 99. Problem - management cannot figure out if licensing agreement will expire with Pabst during year 2003. Very speculative, but also very interesting and fundamentally very cheap.

RINT - Corporate shell that seems to be rumbling about something! Have seen nothing in writing. But suddenly RINT heads higher.

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