S.A. Advisory E-Mail Update
June 23, 2000
NEW BUY RECOMMENDATION FROM WWW.SAADVISORY.COM-JUNE 23,00 Dear E-mailer's: website: http://www.saadvisory.com If you don't want our material any longer, please visit www.saadvisory.com/update and remove yourself! Find box that says "add" and "click" the arrow until "delete" pops up and then add your e-mail and send!! You will be removed! We have not been paid for any of recommendation listed within the message. During the past 45 days or so we have been somewhat inactive toward the commitment of new funds because of the interest rate frenzy and the severe downward action of stocks in general. We continue to watch many "penny stocks", but actually see little reason to jump in-- our opinion is that most will trade sideways until Nov 00! In our last e-mail message ( around May 8th or 9th--we recommended a natural gas play--petd@ $4.375 or so--petd currently is trading @ $5.625). We continue to be very interested in the oil and gas segment and have been searching for a quality opportunity that has little downside risk and very attractive upside potential! We believe that natural gas may head toward $5.00 mcf and that oil even with the latest OPEC increase may still head towards $40/barrel, but most likely will remain at least @ $25.00/barrel during the next 6 months. Concerning Natural Gas: the supplies is very tight--we have not seen severe summer heat yet, tropical storm season has not disrupted production within the gulf yet and ofcourse the winter season still looms. Concerning Oil: OPEC is near full capacity with respect to production-supplies will remain very tight---keep inmind that during the last 10 years or so the price of Oil has not been very favorable towards drillers and this ofcourse aids in the supply problem, in addition with Asia coming back from the dead- more oil is needed, SUV's and other gas hogs also aid in the problem. A recession would surely influence the game, but we are not there yet!!! Our new recommendation is an Oil and Gas Royalty trust--We are extremely BULLISH toward our "NEW" RECOMMENDATION!! Not only is this new investment extremely undervalued by at least 100%, but the current yield equals around 25%!! This Oil and Gas Royalty Trust is Canadian based (Toronto corp formed 1984). NCE Petrofund ( symbol NCF.UN---TSE --It can be monitored within Yahoo!!Go to stocks and look for symbol look up and then enter NCE Petrofund- the symbol for the Yahoo system will appear... At the close of today's trading NCF.UN was quoted @$3.70 US funds! As mentioned this closed-end royalty trust acquires and manages producing oil and gas properties and distributes the resulting cash flow to unitholders on a tax-deffered basis. The fund has a diversified production base. At present 55 million units of this trust are outstanding. The company has actively been acquiring new properties and has increased the reserves by a few 100% in recent months. Please take a moment and visit the company's updated website: http://www.nceresources.com Within this site you may review all recent press releases that explain in detail recent acquired properties, current production levels, current reserves, recent monthly dividends ( .11/month during the past 4 months ( roughly .075/ month US)and recent quarterly results! In our opinion this investment is a steal!! Most "trusts" trade at prices that yield 10-11% --NCF.UN ( toronto exchange) yields around 25%---this means that the stock could double in price from current levels and still be cheap with respect to the share price and yield. We also believe that our monthly dividend will increase from current levels because of recent sky-rocketing oil and gas prices!!!! We believe that NCE Petrofund intends to list itself on a major exchange within the US--this ofcourse would be extremely wise inorder for great exposure within the investment community. We are hearing that the company during early July 00 will stage some "dog and pony" shows within the US inorder for great investor exposure and awareness. During 1999 rev reached $104 million CD$-net income/unit was .34. During first quarter 00 ending March 31,00 rev $32 million vs $17.6 million CD$. dividend .30 CD$ vs .09 CD$ First quarter Oil bbls 428,377 vs 419,983 Gas mcf 4,490,567 vs 3,937,926 liquids bbls 86.5K vs 71.3K At the end of 99 NCE Petrofund had 40 producing properties in Western Canada!! In our opinion, bases upon current Oil and Gas prices, recent acquisitions-the company should demonstrate exposive rev and income growth during 00!!!We believe that the share price could double from current levels ( $3.70 US$) and the dividend for 00 could easily surpass $1.00US$....WE RATE NCE-PETROFUND(TORONTO EXCHANGE) WITH A VERY STRONG BUY RECOMMENDATION @ CURRENT LEVELS..WE INTEND TO MONITOR A POSITION OF THIS OIL AND GAS ROYALTY TRUST FOR % GAIN PERFORMANCE. (WE CURRENTLY OWN 14K UNITS @ CURRENT LEVELS! WE MAY ALSO TRADE OUR ACCOUNT AT OUR OWN DISCRETION) BROKER CONTACT: GREG NELSON 18002699460 OTHER STUFF: FCIN--STRONG BUY--READ THE NEWS--$3.75 HMLD---GOT TO OWN THIS --THIS IS A SUPER CHEAP SUPERMARKET CHAIN WORTH $10.00 NOT $3.50 CBLK--NEWS LOOKS GREAT--SHOULD NIBBLE AT CURRENT LEVELS--$2.18 FRTI---GREAT INTERNET PLAY---FREEREALTIME.COM --A FINANCIAL SITE AND FINANCIAL INFORMATION PROVIDER--READ THE LATEST NEWS--BUY AT CURRENT LEVELS $4.50 XRX@$20,PER@$10.00,WCOM@$38+, SCRO--A PCB MANUFACTURER--@ $3.00 LOOKS VERY ATTRACTIVE FOR NEAR TERM PLAY--READ THE NEWS. APPLIED FOR AMEX LISTING.IT HAS BEEN A GREAT TRADER. SETO--A REAL SLEEPER WITH HUGE GROWTH POTENTIAL--BUY $1.50-READ THE NEWS TEX,OWC,AFS----LOOK ATTRACTIVE AT CURRENT LEVELS NEXT NEWSLETTER-HARD-COPY SHOULD BE OUT SOOOOOON!! HAPPY INVESTING WILLIAM VELMER SUPER FAST PHONE SERVICE WAS CALLED DURING MARKET HOURS AND RECOMMENDED NCE-PETROFUND IF YOU WOULD LIKE TO BE CALLED BEFORE THE HERD GETS OUR INFORMATION -COST/YR EITHER $550 OR $1100/YR---CALL FOR INFORMATION 801-272-761 YOURS TRULY WILLIAM VELMER PHONE SERVICE INFORMANTION:: 1-801-272-47671 $650/YEAR OR $1300/YEAR