S A ADVISORY

November 1998 Newsletter

CONTENTS
Important: DISCLAIMER
Market Comments
Super Fast Phone Service Recommendation
New Buy Recommendation: LUKOIL
VIMPELCOM
_____––> Recent Management Conversation
New Buy Rec.: Homeland Holding Corp.
_____––> Management Discussion
"Oil Patch" PORTFOLIO REVIEW
Stocks Recommended from 7-9-97 to 11-1-98
_____Brief Comments
The End of World Portfolio

DISCLAIMER

SA Advisory usually buys all recommendations prior to phone service, e-mail and newsletter recommendation on mentioned securities. The editor may buy, hold or sell positions in all securities at any time. The portfolios are all hypothetical in nature SA Advisory's portfolios are geared toward sophisticated investors aiming for short, medium and long-term capital gains. By nature, the editor is a stock trader and his trading habits may vary at his own discretion. Most, if not all, recommendations are based upon strict fundamental analysis. Revenue and earnings estimates are the foundation for our recommendations. The estimates result from management discussion. We do not intend to misinform, mislead or hype our readers. It is prudent for all investors to review all filings with the SEC (10Q & 10K) and contact management before investing. Investing in securities are inherent to risks to your financial health. If we are ever paid to produce a corporate profile, full disclosure will be made.

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MARKET COMMENTS

In our opinion, the "Dow" and the S& P 500 remain fully valued! The mini-micro caps within the US are the cheapest segment that offer minimum risk with very attractive long-term appreciation potential.

The risk outside of the US is much less - those markets have already been slaughtered, namely, Asia, Russia and Latin America. The "real" risk in those markets, in our opinion, is not having a position in them. The next move in these areas of the world is UP!

Within this newsletter we intend to concentrate on the riskiest area of the world, namely, RUSSIA! This market is roughly 90% off its 52-week high.

The opportunities mentioned are geared toward risk tolerant, patient and investor type that can relax for 3 to 5 years. These opportunities are not geared toward day traders!

The internet offers excellent information with respect to foreign investments.

  • Our three favorites:
  • www.adr.com - most foreign companies are fully documented.
  • www.ufg.ru
  • www.ufg.ru/research/equities/htm - great review of Russian stocks.
  • www.ft.com - this on-line newspaper, which is free, is a must read.

We still remain nervous about the earnings projections for 99 and suggest investors take profit in the current rally. It is evident that the Fed will most likely lower rates at least once before year end. The market looks for an additional easing as early as mid-November, 1998. This scenario, of course is currently being factored into the market. The recent GDP of over 3% for the third quarter means something, but has little to do with possible devaluation within important industrial nations, namely China and Brazil. The world economy continues to slow and lowering of interest alone within the US doesn't guarantee an economic "soft landing" within the US. We again suggest that investors should lighten up on expensive Dow and SP500 issues and carefully nibble at the depressed and out-of-favor issue.

Yours truly, William Velmer (Nov 2, 1998)



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SUPER FAST PHONE SERVICE RECOMMENDATION

Investors who want to be notified first when SA Advisory releases a NEW RECOMMENDATION, THE SUPER FAST PHONE SERVICE IS FOR YOU - IT COSTS $550/year (including newsletter). We personally call you before the herd is notified. Subscribe now! (See agreement).

  1. On September 23 phone service subscribers were informed to sell remaining position in JAWS. Initially recommended March 30, 1998 @ $1.125, sold 1/2 on May 13 @ $3.06, selling remainder at $3.28. We also informed our phone subscribers about VIP and LUKOY.
  2. Evening of September 23 e-mail subscribers informed to sell JAWS and buy VIP, LUKOY, PCSH and speculate in GGNC.
  3. On September 1 e-mail subscribers informed about "the end of the world" bargains, namely, AAP, AMAT, CYMI, DO, EGLS, HAL, HP, KLAC, RIG, SEG, TWD, CPQ and WALBP.
  4. On October 16 e-mail subscribers informed about our "new" recommendation on HMDL @ $3.375.


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End of World Portfilio

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End of World Portfilio

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S A ADVISORY