S.A. Advisory E-Mail Update
September 4, 2001
S.A.Advisory -New Recommendations for Sept 4,01 Dear E-mailer's http://www.saadvisory.com 1. We have not been paid by any listed investments within this message! 2. If you wish to remove yourself from our service-visit http://www.saadvisory.com/update and follow the one step directions. 3. We may buy, sell and/or hold any of the mentioned securities within this message at our own discretion. The Market: Both the Dow and Nasdaq are now floating around the April lows of 01! The fear factor is ramping-up! The pundits are playing "duck" and "cover" (quack quack). The technology sector is in ruins. Layoffs and plant closures appear in the news daily. We need "TIME" or "NEWSWEEK" to come forward and have a cover that reads " the equity market is DEAD"! August 01 has been horrible for equities and many "pros" are calling for a continuation in the death spiral of the 401k team ( now called the 101k)! Brokers are leaving the biz and being hired @ 7-11 ( in many cases that's all that they are worth!--We hear that Morgan's Mary Meeker got a job @ an overpriced donut store. Our opinion: The fed has lower 7 times --never been in history that economic recovery had not followed !!! The technology sector has not been this cheap in years and years!! We may have to wait a few more quarters, but the quality of techs (sunw,emc, wcom,cpq, nok , csco, mot,vsh,fdry and others) at currently depressed prices looks, in our opinion , very juicy!! The herd continues to run for hills--many loved tech when the average stock was trading @ $100/sh and had PE's of 60,70,80 or higher---now may of the same names are trading as teenagers and resemble value stocks.. It is very hard to buy stocks that continue to go down and also have the whole mood of investing resemble a funeral, but just as the weather changes so will the market and the best time to buy is when the "fire sale sign " is being displayed everywhere!!! Currently the market is over-sold and we anticipate a rally --We do not anticipate the market to make new lows.. We also assume that a recovery will take hold during the first quarter of .02!! We have decided to add 2 more techs to our "tech explosion portfolio" for % gain performance. CSCO & NOK CSCO- $16.31--PROVIDES NETWORKING SOLUTIONS THAT CONNECT COMPUTING DEVICES AND COMPUTER NETWORKS. "THE LEADER"-- BK-$3.77 CASH-.96/SH DEBT= 0 EST FOR JUL 01-.18 EST FOR JUL 02- .43 52-WEEK RANGE--$13.1875--$68.125 STILL NOT SUPER CHEAP, BUT SURE IS CHEAPER THAN $20,30,40,50,OR EVEN $60.00. WE CAN MAKE MONEY ON THIS STOCK AT CURRENT LEVELS--WE WOULD BUILD A POSITION-SCALE INTO THE STOCK!! CSCO IS THE WORLD LEADER AND WILL RECOVER AND BE EVEN A STRONGER AS WELL AS A MORE DOMINANT PLAYER. NOK--MOBILE PHONE MANUFACTURER--WORLD LEADER AND MOST LIKELY THE BEST!!! CURRENT PRICE $15.74 52-WEEK RANGE-$14-$53.75 BK-$2.13 CASH-.81/SH DEBT- TINY(.13) EST FOR DEC 01-.64 EST FOR DEC 02-.76 AGAIN, NOT THE CHEAPEST,BUT WE ARE NOT PAYING $20,30,40,50 OR HIGHER! WE BELIEVE THAT AT CURRENT LEVELS THAT WE CAN MAKE MONEY ON NOK WITH LITTLE DOWNSIDE RISK!! AS WITH CSCO WE WOULD BUILD A POSITION AND SCALE INTO THE STOCK. A NEW BUSINESS CYCLE WILL HAPPEN-A "KILLER APP" WILL SURFACE AND PHONES WILL BE UPGRADED AND ENHANCED. WE CURRENTLY OWN BOTH STOCKS @ CURRENT LEVELS AND IF THE TRADE LOWER WE WILL BUY ADDITIONAL SHARES.. AS MENTIONED WITHIN OUR LAST E-MAIL MESSAGE--WE INTEND TO USE SCRO AS OUR TECH PICK FOR DICK DAVIS DIGEST --TO BE RELEASED ON OR ABOUT SEPT 21ST 01 . GREAT SPECULATION @ .45 FOR .12 NET FOR THE 6 MONTHS ENDING JUNE 01. AS ASSUMED IF THEY ONLY CONTINUE AS THEY HAVE FOR THE FIRST SIX MONTHS--SCRO WILL NET .24/SHARE--HOW CAN IT REMAIN @ .45--READ RECENT PRESS AND LATEST 10Q FOR ADDITIONAL INFORMATION --PAST NEWSLETTER--APRIL/MAY 01--FIRST RECOMMENDATION ON SCRO!!!! WE HOPE TO RELEASE OUR HARDCOPY LETTER WITHIN 3 WEEKS. HEADING TO THE CAYMANS YOURS TRULY WILLIAM VELMER 801-272-4761