S.A. Advisory E-Mail Update
August 1, 1999
Subject: S.A.Advisory for August 1,99--see story on frcm
Dear E-mailer's htpp://www.saadvisory.com
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1. Teltran (TLTG) On July 27,99 we placed a sell recommendation on another 1/3 position
of tltg @$8.75! Our main and only motive is profit! Our first sell was placed on tltg
during early July @$12.625! Our only motive was for profit! Recall, We recommended tltg
on or about Feb 17 @$1.40 via our phone service, e-mail service and ofcourse our "hardcopy"
newsletter that has been published for over 16 years!
We stand to be corrected concerning shares outstanding! We stated that 16 plus million would
be outstanding after the SB- 2/A filing was approved by the SEC. At present, according to the
lastest filings(10q) tltg has 12.7 million shares outstanding. Upon view of the document (SB
2/A) it still appears that more stock will be or could be sold once the SEC approves the document!
(We are not sure!)
At present we are not that concerned: We still enjoy a position in tltg, but again, have not
and will not marry it! If we leave change on the table so be it! We believe that the market
is currently heading into a seasonal turbulence and that the group of "Internet" related issues
may continue to head lower. We are not saying that tltg will follow that trend, but we still
believe that we may have another buying opp. to buy back tltg shares at lower prices! If not,
we have already made a HUGE score within a very short period of time! Huge potential exists
for tltg and risks are just as prevalent ( fundamentals concerning tltg at presently slim).
At present, tltg has filed for listing on the AMEX. We actually prefer the NASDAQ, but believe
that either way that this is a very positive development and commend management with progess
that has been made during the past few months. We actively use the tltg portal for stock quotes
daily.
Finally, We still like tltg ! We love profits! We will re-visit tltg again!
2. Great White ---JAWS
We recommended JAWS at around the $1.00 level during March 98 and sold half ($3.06) during May
98 and the balance during Sept. 98 @ ($3.28). During Sept 98 an SEC investigation was in place to
investigate corporate activities. On July 29,99 --the SEC filed a major complaint against the
president of JAWS..This is a must read---go to www.techstocks.com and review the complete brief!
This sounds like a great movie script! We believe that it is over for JAWS and the "SLOGS"!
3. TMED
Recently recommended via e-mail on July 27th @$2.06---read last e-mail for complete story!
Earnings released on Friday (July 30th).. Most likely take the stock lower! We like it at
the $2-$2.25 level.. In our last e-mail we stated that this would be a great trading stock!
4 THIS MAY BE BORING TO MANY, BUT FUNDAMENTALLY ORIENTED INVESTORS WILL LOVE THIS SITUATION!
FIRECOM, INC. ( FRCM ) current price .53
Primary business: The company designs, manufactures and distributes custom fire detection,
communications and control systems for commercial buildings and commercial audio-visual systems.
Through its fire controls division, the company designs, manufactures and distributes, under
the Firecom brand name, safety and security systems for high rise office buildings, hotels,
apartment buildings and other large commercial buildings.
The fire alarm and commercial systems or "life safety systems" designed, assembled and sold by
the company have the following functions:
1. sensing and reporting fires
2. sounding alarms in the event of a fire
3. notifying the fire department
4. controlling basic building functions to prevent the spread of fire and smoke
5. allowing building-wide communication between fire fighters and building occupants
1. Fully reporting with the SEC
2. 11.5 million shares fully diluted as of April 30th 99
Looks like management owns 5.7 million shares (common and "a"), other shareholders
own 3 million, within the treasury-another 2.5 million
Float around 700k
3. cash--$4 million
4. Book value $6,038,000 plus $850,000( land value not on books, but mention within latest 10k
yielding a book value of .60--Total $6,888,000-book value
99 year ending 98
rev $17.37 million $14.14 million
net income/sh .10 .05
shares outstanding 11.5 million 12.2 million
CURRENT SHARE PRICE .53
PE: 5.3x
P/CF: 4.87x cash flow net income plus D & A
PSR: .35 price to sales
P/B: 87% price to book
Cash/Share .34
GR: 23% growth rate
If frcm was to trade at growth rate frcm would be trading at $2.30 NOT .53
If frcm was to trade at a conservative PE: of 15 frcm would be trading at $1.50 NOT .53
If frcm was to trade at 2X book value frcm would trade at $1.20 NOT .53
If frcm was to trade at 1x sales (which is very cheap) frcm would trade at $1.60 NOT .53
If frcm was to trade at 10X cash flow ( low value) frcm would trade at $1.20 NOT .53
We intend to monitor FRCM in our portfolion for % gain performance!
Broker contact: Mike Chesler: 1-800-890-1629
5. We are somewhat interested in MAWI-The company holds a fair number of Internet related
issues
ie: snmm --only 11 million shares outstanding and a float of 2.9 million ..We picked
up a 1000 shares for a possible play--Somewhat risky --At present not a recommendation--we
need to see soon to be released 10k and or 10q's for additional information.
Note: We may buy, sell and or hold any mentioned stocks mentioned within the e-mail!
We have not been paid by any company listed!
Yours truly William Velmer http://www.saadvisory.com