S.A. Advisory E-Mail Update
February 23rd, 2003
New Recommendations from S.A.Advisory & Oil & Gas updates-FEB 23, 03
Dear Emailer's www.saadvisory.com
We have not been paid by any of the companies mentioned within this message.
We may buy, sell, and/or hold any listed investments within this message @ our own discretion.
We currently hold positions in all mentioned opportunities mentioned within this message.
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OIL AND GAS OPPORTUNITY
We remain very bullish towards Oil & Gas opportunities and believe that regardless of the current
geopolitical events that we are currently dealing with that Oil & Gas will remain an important ingredient
within our industrial complex. At present Oil is trading @ $36/ barrel ( most likely a $10 war premium
and this figure also take into account the problems within Venezuela) and Gas is trading @ $6.60/mcf.
Supplies remains tight and the weather remains colder than normal esp. on the East Coast of the US.
In our opinion, investors should always diversify into varied industrial groups so as reduce the
risk that is inherent to investing. We mentioned within our last Email Alert about the opportunity
of participating in direct ownership of an Oil & Gas project located within the state of Texas. Energy
Equities( been in business for 10 years) has allowed our investors the opportunity to participate
in this project that is usually only available for corporate participation!
The Elysian Program ( consists of a 4 well program) will be drilling the first well within days!
You may review the progress of your investment by visiting www.energyequities.com/elysian
and may also view the changing camera shots of the actual drill site. Review the MAP that
is also available that shows the actual site and a well that was drilled 2000 ft away from our
site that will be a large producer. We are very excited about this project that we are currently
participating in! As mentioned in Feb 9th Email Alert--This project is located within Panola
County, Texas--the 4th highest producing county in Texas. The Elysian Program consists of
4 gas wells that are developmental in nature. There have been over 100 wells drilled within
this lease area and only 6 have been dry wells! Upon successful completion of these wells-
monthly royalty checks are distributed and attractive tax advantage only sweetens the deal!
S. A. Advisory has personally participated within this project and believe that success is imminent.
We have been informed that there is still a small amount of interest left that can be purchased by
S. A. Advisory investors. For more information visit www.energyequities.com and
www.energyequities.com/elysian . If you would like to participate in this project call
1-800-794-3429 attention Chauncy B.
We intend to monitor the success of each well and post results on our website!
************************* STOCKS**************************
IN OUR LAST EMAIL WE MENTIONED THAT WE WOULD BE RELEASING A
STOCK THAT YOU HAD TO OWN @ .10/SH. FOR A $50 FEE MANY OF YOU
RECEIVED OUR SELECTION DURING THE PAST 10 DAYS VIA EMAIL OR A
PHONE CONVERSATION. WE INTRODUCED THIS SELECTION TO DICK
DAVIS AND ASSUME THAT IT WAS PICKED UP AND WILL BE RELEASED
ON FEB 24, 03--IF IT ISN'T-IT IS STILL A "HOME IMPROVEMENT BARGAIN"
FIVE STAR PRODUCTS ( FSPX--otc bb-----price .13)
FULLY REPORTING WITH THE SEC
The company is engaged in the wholesale distribution of home decorating, hardware and finishing products.
Five Star is a distributor of paints sundry items, stains, brushes, rollers, caulking compounds and hardware products.
AMERICANS PURCHASED OVER $187 BILLION OF HOME IMPROVEMENT PRODUCTS DURING 01 AND
GROWTH IS ANTICIPATED AT 5%/YEAR UNTIL 2006.
FSPX has generated $75 million and net of .04 for the 9 months ending Sept 30th 2002. It is est.
that for the year-ending Dec 02 rev will surpass $100 million and net income/sh will equal .05.
FSPX has around 15 million shares outstanding-- yielding a super-tiny market-cap of only $1.5
million! The BK is around .20 and the PE value for 02 will equal a value of 2!
HAS TO BE ONE THE CHEAPEST STOCKS ALIVE TODAY! Recently 2+ million shares
were valued @ .22 resulting from a transaction. This situation has takeover "painted" or "rolled"
all over it! A buy-out offer of 15% of sales ( very conservative) FSPX would trade @
$1.00/sh NOT .10--that is a 900% move from current levels!!!! If we assign a conservative PE
of 10 to FSPX we calculate a share price of .50 NOT .10! It is hard to hammer away the extreme
discounted price that FSPX currently sports in an industry group that paints a pretty picture during
the next few years.
When you consider that the market-cap, price to bk, Price to Sale Ratio, PE value, overall
industry growth potential, buyout potential and goodwill ( channels of distribution) that FSPX
is beyond CHEAP! THE PAPER THAT THE STOCK CERT IS PRINTED ON COSTS
MORE THAN THE PRICE OF IT'S SHARES- YOU HAVE TO SIT BACK AND WONDER
IF EVERYONE IS JUST SNIFFING PAINT FUMES!!!
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PROVIDIAN PVN-nyse price $6.20
STRONG BUY RECOMMENDATION @ CURRENT LEVELS
We first recommended PVN during April of 02 @ $7.55 then again July 17, 02 @ $4.00.. We feel @
current levels that this consumer credit card issuer offers investors excellent upside potential with limited
downside risk. The turn-around that has been integrated within PVN by "new" management assures not only
survival, but in our opinion dramatic growth potential during the next few years. Management
during the past few months have been STRONG BUYERS OF PVN STOCK! This of course is
usually an excellent indication of management's opinion of their company! At present PVN is trading
@ 20% below its stated book value ( stated bk -$7.50). Earnings est. for 03 & 04 average .61
and $1.05 respectively---yielding a very conservative PE est. for PVN. Based upon 02 actual
earnings of .55 PVN is only trading @ 12X . If you use the actual net net income/sh of .30 for
02 then PVN is trading @ a PE of 20X. If we assign a PE of 18 to a "newly" strengthened PVN
then a share price of $11 and $18 respectively is calculated. In our opinion, during the next
6-18 months PVN could and should appreciate between 100%-200% unless it bought out by
another major CC company looking for a "piece of success"!
Near-term PVN will continue to trade as "choppy" as the rest of the market until this Iraq
situation is concluded. The consumer and corporate America will remain frozen until the
current geopolitical uncertainty is removed from our troubled world landscape.
Final Note: A few "no balls-brokerage firms" have recently warmed-up to PVN and
have upgraded their opinion on this stock, but many have not upgraded their opinion because
they are lazy--this will eventually be remedied and more upgrades will be forthcoming. We
were impressed with Thomas Brown's review of PVN on his website www.bankstocks.com
and PVN investor types should read his in depth piece.
**************OTHER STOCK BITS********************
1. We are hearing that on Feb 24th on CNBC that Smith & Wesson will be interviewed and
that DFNS's bullet- resistant vest will be displayed with mention of Defense Industries. We
are bothered by the continuing selling of DFNS shares, but eventually this will stop and the
true value of this investment will develop.We anticipate addition PR soon!
2. In regards to energy related stocks that we currently favor: dyn, cpn, aes, mir and wmb
This groups of debt-ladened energy plays -in our opinion will survive and prosper. They
are all very speculative in nature, but offer excellent upside potential with limited risk--most
are priced as if they are options with no expiration date.
AES-----------$3.41
CPN-----------$2.62
DYN----------$2.03
WMB----------$3.58
MIR------------$1.65
3. SETO--For the nine months seto had rev of $5.8 million and net income/sh of .12--
We anticipate earnings for the fiscal 03 ending January 31st to be release during Mid-
March 03 and anticipate earning/sh of between .14-.15 for the year. The stock is
currently trading @ .30 ! This results in a PE est. of 2X trailing for fiscal 03! We
also anticipate introduction of "new" safety products during first quarter of 04. We
rate SETO with a STRONG BUY @ CURRENT LEVELS.
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IF YOU WANT THE NEXT MICRO-CAP STOCK SELECTION BEFORE THE
HERD SEND US $50.00 AND WE SUPPLY YOU WITH THE NAME OF OUR NEXT
SUPER CHEAP STOCK PLAY! WE WILL POST THE NAME ON-LINE AROUND
MARCH 10TH FOR THE HERD!
THIS STOCK HAS REV OF $130 MILLION FOR THE 9 MONTHS AND EARNED
.15 BEFORE ACCOUNTING CHANGES AND .08 AFTER THE CHANGES. THE
STATED BK IS OVER $1.00 AND ONLY 11 MILLION SHARES ARE OUTSTANDING!
THE STOCK IS CURRENTLY TRADING @ .37---ANOTHER BUYOUT CANDIDATE?
ANOTHER SUPER-CHEAP-CHEAP STOCK THAT SHOULD BE $1.50 NOT .37
SENT CHECK TO S. A. ADVISORY
521 BOLSA AVE
NEWPORT BEACH CAL 92663
INCLUDE YOUR EMAIL ADDRESS SO WE CAN SENT YOU THE STOCK SELECTION
BEFORE THE HERD GETS THE PRIZE @ HIGHER PRICES.
HAPPY INVESTING,
WILLIAM VELMER editor www.saadvisory.com 7 years
editor S.A.Advisory financial newsletter 20 years
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