S.A. Advisory E-Mail Update
October 30, 2000
Major Buy Recommendations -S.A.Advisory for Oct 28,00 . This is a "treat" not a "trick"--tech bargains and micro's Dear E-mailer's http://www.saadvisory.com If you do not like our stuff-you must delete yourself--visit www.saadvisory.com/update and scroll the "add" until delete drops- place your e-mail address within the box and send. We have not been paid by any of listed stocks within this message. We currently hold positions of all listed stocks mentioned and may buy, sell and/or hold mentioned securities at our own discretion. We have been relatively quite during the past few months while the slaughter continues! The dot coms are dot DEAD! If you purchased large amounts of this "theme"--you are most likely broke! The "techs" got extremely over bought and are now oversold in our opinion! Most of our selections are down 60-90% from the March 00 highs! The penny's are even worse off! Most are down 70-90%!! Most investors never make money because they are always on the wrong side!! They usually buy @ the top and sell @ the bottom! When things look the worst the opportunities are the greatest-- In our opinion we have reached that time frame!! It takes BIG BALLS to jump when things look cloudy, but separates the seasoned investor from the beginner. The key is to buy fundamentally cheap opps. and try to remove the emotions from doing the opposite of the loser herd! We have a very different environment for investing at present- high interest rates, high oil and gas, presidential election, middle east problems and slowing corporate profits. We may even have a recession during 01---Invest for the future not for today --Our selections are geared towards long term investing--NOT DAY TRADING!! Within this message we intend to recommend 7 mid and large caps and 6 micro's--They will all be monitored for % gain performance within a specific portfolio. We are condifent that our selections will show dramatic gains over the long term!! The real risk is not playing @ this point in the game!! S.A.Advisory has been in the business for almost 17 years and our gut is growling BULLISH! The Tech disaster Portfolio: ATMI,CNXT,VSEA,KLAC,AMAT,T,WCOM,MOT AMTI-supplier of material used worldwide in the manufacture of semi-devices bk-$8.81 cash-$5.51 debt- almost nil 52-week range- $15.75-$60.75 shares out-29.7 million rev for 9 months $213 and net of .97 vs $143 million and .44 net 00- year end est. $1.37 01- year end est. $1.83---We assume this number will be lowered. RATED: BUY @$18.375---over sold condition--could be a takeover candidate! CNXT- provides semi- products and systems solutions for communications electronics bk-$12.80 cash-$3.66 debt-low 52-week range--$20.43--$132.50 shares out-228 million year ending Sept 30th 00- rev $2.1 billion and net loss $190 million ( Note: This # includes a $215.7 million write-off of purchased R & D) 01 est.$.75 RATED: BUY @$22.00---Off 85% from over valued high! Now in our opinion over sold- Looks very attractive @ current levels for long term gains. VSEA-designs, manufactures, markets and services semi-processing equipment in the fabrication of integrated circuits. bk- $10.44 cash-$3.79 debt-0 52-week range---$18.00-$73.25 shares out-32 million year-end -Sept 30th 00 rev $626 million and net $2.94 vs $206 million and loss of .43 01 earnings est. $4.04--Even if they only earn $2.00 this is a screaming long term BUY! could also be a takeover candidate! RATED: BUY @ $19 15/16 KLAC--engaged in the design, manufacture, marketing and service of yield management and process monitoring systems for the semi industry bk-$9.60 cash-$5.00 debt-0 52 week range-$25.50-$97.75 shares out-187 million first quarter ending Sept 30th 00 rev $534 million and net .54 vs $272 millin and .21 01-est earnings $2.24 RATED: BUY @ $31--long term bargain! AMAT- develops, manufactures, markets and services semi wafer fabrication equipment and spare parts for the worldwide semi- industry. bk-$7.56 cash-$4.62 debt- very little 52 week range-$40.50-$115.00 shares out- 811 million 9 months ending July 30,00 rev $6.6 billion and net of $1.63 00 est.$2.38 01 est.$3.54--may be too high RATED: BUY @ $48--core holding for semi industry-off 60% from over valued high--now looks like under valued---Not the cheapest-just the leader! T- provides voice,data and video communications- also furnish domestic and international long distance, local and wireless comm. services, cable tv and Internet comm. services. bk-$29.34 cash-.11 debt- 50% 52 week range-$21.25-$61.00 shares out-3.76 billion rev for 9 months $49 billion and net $1.40 00 earnings est. $1.80 01 earnings est. $1.68 RATED: BUY--over sold, brake-up very bullish long term--lots of hidden value-a long term winner in our opinion. Current price $21 15/16 WCOM-provides a broad range of comm. outsourcing, and managed network services to both US and non- US based corps. WCOM provides one of the broadest range of Internet and traditional, private networking services available from any provider bk-$19.31 cash-.32 debt-fair amount 52 week range-$20.13-$61.33 shares out-2.87 billion for the 9 months ending Sept 30th 00 rev $29.4 billion and $1.20 net vs $26.5 billion and .91 net 01-earnings est. $2.20 RATED: BUY long term--great internet play( infrastructure) may even be a take over candidate @ current levels--extremely over sold--current price $22.06 MOT- wireless telephone, two-way radio, messaging and satellite comm. products and systems. internet -access systems, ect, ect. bk-$9.47 cash-$1.42 debt-fair amount 52 week range-$20-$61.54 shares out-2.18 billion 9 months ending Sept 30th 00 rev $27.5 billion and .52 00 earnings est. .98 01 earnings est. $1.23 RATED: BUY - core holdings @ current levels-off 66% from over valued high--now over sold! The penny stock disaster portfolio! mctl,fspx,tmss,scro,avti,iwmc MCTL- otc bulletin board--hardware products and service primarily for the telco industry bk-.21 cash-.06 debt- high 52 week range--.15-$2.875 shares out--20.5 million for the 9 months rev $21.5 million and net .05..looks like a turn-around firmly in place. We recom. mctl @.25-.50 previously and took profits between $1.50 and $2.00. Time to reload @ .48--sec reporting RATED: BUY FSPX- otc bulletin board --wholesale distribution of home decorating, hardware and finishing products-fully reporting with sec. bk-.11 cash-91k debt-$5 million 52 week range-.18-.53 shares out- 13 million for the six months ending 6-30-00 rev $48 million and net .03 vs $44 million and .02 net. For the year ending Dec 00 rev should reach $100 million and net should equal .06! Looks very attractive @.24 RATED: BUY TMSS- document capture, image enhancement, image viewing,forms processing, intranet and internet. otc bulletin board and fully reporting with the sec. bk-.23 cash.10 debt-very little 52 week range-.13-$1.50 shares out-13.3 million year end 8-31-00 rev $3.6 million and net loss .03. The fourth quarter was profitable. company has $1.4 million in cash-looks over sold--Read the latest press from Oct 19th and 23rd. RATED: BUY @ .27--great shot-down 82% from high! SCRO-otc bulletin board- fully reporting with sec. designer and manufacturer of PCB's -includes flexible ,double-sided and polyester-use in the consumer electronics market. bk-.31 cash-$340k debt-0 52 week range-3/4- $5.375 shares out- 19.9 million reverse- merger about 6 months ago- for the quarter rev $5.1 million and net .07. If they continued-should easily reach $20 million and .28 for fiscal 01. Looks very attractive @ current levels-$1.125--Read the recent news- RATED: BUY--down 80% from the high--looks very over sold @ $1.125 AVTI-otc bulletin board and fully reporting with sec. provides refurbishing and services and engineering consulting to semi manufactures--main customer AMAT. bk-na cash-$150k debt(lt)-0 52 week range- .03-$1.34 shares out-39 million The numbers are not the greatest for the six months-rev remain flat and losses grew-resulting from non-operations. An offering was filed with the sec during Sept 00- not sure of the results. News items look very good! Worth a shot @ .16.. We first recommmended avti Jan 00 @ .12 and sold half @$1.00 during the big run! RATED: BUY--worth a shot--looks over sold! IWMC-otc bulletin board and fully reporting with sec. company develops,operates and owns nursing homes. bk-.36 cash-.33 debt(lt)-$4.4 million 52 week range .13-.46 shares out-16 million for the six months rev $6.2 and a brake even. treasury holds 5.8 million shares and management owns 6.3 million. large parcel of land in Colton ,Cal on the books for $300k ( actually worth millions)--management getting older-should sell company--big value for little price--.18 nce-petrofund now trades on amex --ncn Allied Oil and Gas now trade on Toronto--aog.to----very bullish towards this issue @.66 US If you can buy afpc @.375 and seto @.50 --we would jump Our hard copy newsletter will be out during Nov or early Dec 00..We have some personal matters that must be reviewed... Happy Investing, Yours truly, William Velmer 801-272-4761 Phone service investors get the call first before the herd--$650/yr or $1200/yr call for information RATED: BUY worth much more than .18 in our opinion