S.A. Advisory E-Mail Update

July 2, 1997

The majority of these investment opportunities will appear in S.A.Advisory's next newsletter due out by the middle of July 1997.

  1. Octel Communications Corp. OCTL --recommended on April 30,1997 @$16. still looks very attractive even at current levels ($22) for long term oriented investor types. The overall consensus is extremely bullish with next years earning estimates coming in at over $1.30
  2. Digital Equipment Corp. Dec--We love this stock--We initially recommended this situation at $19 a few years ago and took profits at $73--mentioned in our last newsletter -that DEC looks super cheap at $26--now $35 and we believe that this still is an excellent world class company that will turn around and make us a lot of cash. We love what everyone hates. Current book value is $22.85 with $16.24 in cold hard cash--price to sale in only .44 -- we also believe that a settlement is coming concerning Intel--favorable towards DEC. Long term looks like a steal...
  3. Penn traffic Company PNF---A large supermarket chain that has lots of problems, but has some very interesting bonds that are current and are trading at half par. We currently own the 9 5/8 senior Subordinated Notes due April 15, 2005. for more info call Greg Nelson at 1800439408 Current price around 56
  4. Diversified Corporate Resources. HIRE( pink sheets)..This is one of the most obscure stocks that we have recently purchased. The company is an employment service firm- highened professionals --last year ending Dec 1996 --sales $27,430,000 and net income of .83--1.8 million shares outstanding-- book around .85-- revenues up first quarter- earnings a little weak, but we are not worried-- forward split coming during July 1997 (2 for 1 ) --current price around $5.25-- anticipate new listing very soon-- nasdaq BB.. questions -Mike Chesler 18003311355
  5. Pacific Research & Engineering. PXE (AMEX) Manufactures high-quality broadcast studio products--all the majors buy from these guys.. Management anticipates that they can achieve sales of $14 mil and income/share of .35 during this year-a serious turnaround--book around $2.06--2.3 million shares outstanding--IPO-May 1996 @ $11.00/unit ( 2 shares and 1 warrant)
  6. Stillwater Mining Co.SWC--The company in engaged in platinum and palladium mining in T..Currently around $21.First quarter sales of $16 mil losses of .09 based upon 22 million.-- book value around $7.04 --bullish attitude towards SWC --next year earnings anticipated at around .50..A great inflation hedge and unique portfolio addition...Should consider a small position or at least something to watch.
  7. Newmont Mining.(NEM).Super quality gold mining company . Looks attractive at current levels --trading close to 52-week low. Long term a portfolio candidate. Next year estimated earnings come in at around $1.51..Opinion is extremely Bullish.
  8. Visual Telephone International, Inc.(VTPI)..This one has huge upside potential when one considers the current price, that is .13/share..The company offers an affordable PC based video-conferencing solution in the desktop video-conferencing market with plug and play installation. During June 30,July 1 and 2 will be demonstrating their Visual 100 PC-based desktop video-conference system at the International Teleconference Association Exposition in Washington, D.C. In addition TVPI intends to introduce a new product at the show as well.. Currently around 7.5 million shares outstanding cash is tight. trading close to all time low. Looking to raise cash for faster growth. Small investment could be quite rewarding. Corporate # 2015250777--Joel-- Broker--Mike Chesler--18003311355..Take serious look at this one-NOW!
  9. Platforms International Corporation.(PLFM) A flight hardware company that is involved with development of the S-15 Harv (high altitude research vehicle)..On June 30th announced that it has won a $10 million-5 year contract from Teledyne Ryan Aeronautical to provide flight hardware for a NASA project. More contracts pending according to management.. Profit margins are huge.. Management estimates if all goes well earnings could approach .30/share during 1997 ..Management believes that $4 million in sales and net income/share of .30 is possible. At present 7.5 million shares outstanding. Current price ----only .08 A great speculation with 20X upside if everything gels---See releases.. Only geared toward risk oriented investor types. Corp # 18887420770---broker # Mike Chesler 18003311355
  10. Electrocon International (epltf) At .68 this deserves a good hard look.. Hong Kong based-doing business also in China--semiconductor and golf related.. Year end and first quarter numbers due out any day now. Has not reported since November 13,1996--due to foreign requirements-- sell off is way over done in our opinion.. Great way to play China. Revenues should approach $55 million ending Dec 1996.. 6.6million shares outstanding.. book value around .35,has a few million in cash, anticipate some sort of equity financing soon. trading close to 52-week low. Take a hard look at this one...
  11. Cablelink (CBLK ) around $3--looking for record sales and earnings($3.mil and .13) due out around July 15,1997--(See Corporate Profile listed in Profile section..

Finally ALMI looks extremely cheap for investors looking for an Internet Play. This one has around .80 in cash/share, no debt, cutting edge technology, book value $1.25,trading close to 52-week low...... current price $1.56

Final Note: Visit Energy Equities ad for Oil and Gas Opportunities located on our Home page.. A great way to diversify into the Oil and Gas business. Become an active participant in developmental drilling programs, receive favorable tax savings and receive royalty checks from successfully completed wells.

BEFORE YOU SEE IT HERE --- !!!!!!HEAR IT ---1-900-990-0909 EX192($2/min) updated a few times per week...

Yours Truly, William Velmer

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