S.A. Advisory E-Mail Update

S.A.Advisory
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S.A.Advisory Newsletter
Newsletter Subtitle

June 26, 2003
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-- NEW BUY RECOMMENDATION - EN POINTE TECHNOLOGIES
-- MARKET COMMENT FOR JUNE 26TH 2003

Dear Subscriber,

We have not been paid by any of the listed investments within this email. We may buy, sell and or hold any mentioned investment @ our own discretion .

If you do not want our material any longer visit www.saadvisory.com/update and follow the directions or follow the direction within this message. In this issue: NEW BUY RECOMMENDATION EN POINTE TECHNOLOGIES NASDAQ---ENPT CURRENT PRICE .80

NEW BUY RECOMMENDATION - EN POINTE TECHNOLOGIES
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The company is a national provider of information technology (IT) products (hardware & software) and value-added services with a customer base consisting primarily of large and medium sized companies and government entities. The Company uses proprietary and non-proprietary software and systems to drop-ship materials, repair and operation products to its customers through an electronically linked network of supplies that include distributors and certain manufacturers in the United States.

Book value--$2.44
Cash/share--.21
shares outstanding--6,700,000
52-week range---.31- $1.80
March 2000-------$47.00
location--------- 100 N Sepulveda Blvd 19th fl
El Segundo, Cal 90245
310-725-5200


SELECT FINANCIAL DATA FISCAL YEAR SEPT 30TH

2000 2001 2002
REVENUE $494.4 MIL $365.3 MIL $257. MIL
EARNINGS/ SHARE (LOSS) ($3.02) .80 (.51)

SIX MONTHS

2003 2002
REVENUE $147.6 MIL $131.4 MIL
EARNINGS/ SHARE (LOSS) (.36) (.11)


3 MONTHS ENDING MARCH 31ST

2003 2002
REVENUE $72 MILLION $57 MILLION
EARNING/SHARE
(LOSS)
(.25) (.11)

Opinion:
Enpt- This is a very interesting investment opportunity that should not be overlooked. The Industry segment, namely, Information Technology (IT) appears to scraping off the 2-3 year bottom and looks ready for solid growth during the next 6- 12 months. At present ENPT (nasdaq) is trading at less than 34% of stated book and a very very super low PSR ( price to sales ratio) value of .02--- A value of 1 is considered CHEAP--so @ .02 it is very attractive based upon this investment variable. With only 6.7 million shares outstanding and a share price of .80--it yields a market cap of only $4.6 million with a revenue base of $300,000,000.00.. As this industry segment consolidates it is very possible that ENPT is a juicy takeover candidate. This is a very cheap way to buy a whole lot of business. Trading at 1/3 of book value --looks like limited downside risk based upon the stated value and what the stock is trading for (that is .80)--Again as a takeover candidate ENPT could be bought out @ book and still be very cheap! The sticking point for ENPT is the earning picture, which has been poor in a poor environment. If ENPT can make MONEY this stock will FLY HIGH! Wall Street loved ENPT @ $47.00/sh but hates it @ .80--GO FIGURE! Another aspect of ENPT that should be considered is the fact that REVENUE growth has been very impressive, that is, for the current quarter 25% over comparable 02 quarter and 12% for the current six months ending versus comparable 02 numbers.

THIS IS A VERY POSITIVE FACTOR THAT SHOULD NOT BE OVERLOOKED!
Upon review of May 6th 03 press release--Bob Din stated: " We view these 6 months results as positive and are hopeful that they point to a return to solid growth for the remainder of 2003" (President of ENPT)..
No investment that trades @ .80 is perfect--If it was it would be $10.00/sh. The negatives: Will the company remain in compliance with its lenders and in a recent press release-there is mention of an allegation of over billing the City of L A between $700k - $2.9 million. Can the company return to a profitable stance?

All-in-all ENPT @ current levels is a great speculation for investors that wish to invest in a B to B Information Technology (IT) products and services company that could be a 8 "banger" with calculated downside risk! ENPT share price (.80) sports a "fire sale" PSR and Price/Book, the Industry appears to entering a "growth mode", under-the-radar of almost everyone, insider buying recently and takeover candidate potential as the industry consolidates.

We rate ENPT with a Strong Speculative Buy Recommendation! We will monitor ENPT for % gain performance. Broker contact; Mike Chesler 1-800-227-2226

PORTFOLIO PERFORMANCE SINCE JAN 01, 2003
SYMBOL PRICE RECOMMENDED CURRENT PRICE STATUS
aes $3.02 $6.35 B
cpn 3.26 6.11 B/H
mir 1.87 2.48 H
elnk 5.45 7.59 B
eln 2.46 5.00 S
tyc 17.08 18.80 B
vtss 2.18 4.99 B
slr 3.55 3.36 B
sanm 4.49 6.11 B
toy 10.00 12.48 B
intc 15.57 20.45 B
csco 13.09 16.77 B
fdry 7.04 14.22 s1/2@15.29
imax 4.00 8.24 B/H
lu 1.26 1.87 B
nite 4.79 6.38 B/H
pvn 6.49 9.26 B/H
sunw 3.11 4.70 B/H
cc 7.42 7.83 B
afpc.ob .14 .15 B
dhb 1.66 3.50 B
etec.ob .36 .38 B
fspx.ob .09 .09 B
mctl.ob .22 .40 H
mead 3.12 3.05 B
pdge.ob .23 .36 B/H
seto.ob .27 .22 B/H
socr.ob .30 .55 B/H
dfns.ob .60 .23 B/H
targ.ob .15 .30 B


FEB 23rd 2003
SYMBOL PRICE RECOMMENDED CURRENT PRICE STATUS
pvn 6.20 9.26 B/H
aes 3.41 6.35 B
cpn 2.62 6.11 B/H
dyn 2.03 4.20 B/H
wmb 3.58 7.60 B/H
mir 1.65 2.48 H

MARCH 26th 2003
SYMBOL PRICE RECOMMENDED CURRENT PRICE STATUS
iece.ob .48 .72 B/H
APRIL 6th 2003
esan.ob .32 .27 B
APRIL 22nd 2003
eegl 1.04 1.78 B
MAY 30th 2003
adg 16.95 17.56 B
JUNE 26th 2003
enpt .80 -- -- B

MARKET COMMENT FOR JUNE 26TH 2003
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From the March-April 03 lows we have seen a very nice re-bound in all sectors of the stock market. It is only natural that the market have some sort of breather before the markets attempt to march higher! Longer term we see much higher prices and most of us will look back and wonder why we hadn't bought more stocks at "fire-sale" prices. We remain very positive about America's future- regardless of the dangerous unknowns that threaten us everyday. We have record low interest rates, large short positions by the masses, Mutual Funds are not heavily invested, Money Markets and CD's have such tiny returns-that this is added fuel for the markets and stock owners today are stronger holders and not very inclined to sell shares for tiny profits when one considers the PAIN that was endured during the past few years. Let us not forget that Corporate America is much leaner and the profit picture could be much more positive than most think. Wall Street has the tendency to be overly optimistic or overly pessimistic- either the sky is falling or the sky is the limit!! We remain focused and will continue to buy cheap stocks and not be afraid because we have a different plan that the "herd" investor gravitates toward.

Have a Happy 4th of July--We Believe in America and am proud to live in this great land.

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Yours truly William Velmer editor since Feb 1983


Contact Information
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email: naga1@ix.netcom.com
voice: 9499229986
web: http://www.saadvisory.com

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