July - August 1999 Newsletter

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.

To Newsletter Contents

THE WAKEUP CALL

One of these days investor types will wake up to higher interest rates, the September-October market weakness scenario, the Y2K drama, inflation, the presidential guess who, and just plain over priced stock groups, namely the Dow, NASDAQ, 100 and, of course, the internet mania that is sweeping the world. We still believe that 9500 on the Dow by year end is a possibility.

The Internet killer, of course, will be Uncle Sam demanding some of the action in the form of sales tax, and let us not forget the possible charge for e-mails. The morons at the post office feel left out. As you know, the service at the post office is still worse than terrible. So now they concentrate on stamp collecting. We must admit that the peel and sniff stamps are better than great and Daffy Duck adds life to any snail mail!

The mini-micro caps had a flurry of life for a couple of months, but now they have stalled. The Russian market is the best performer of the year - up over 100% (our investors were recommended LUKOY, VIP and TRF back in September, yielding huge gains to date. We now are recommended two more Russian Oils, SGUZY, SIBNEFT - see story within this letter).

Our domestic oil related issues have gone to the moon - see portfolio.

Within this issue we have gathered a vast amount of information for our investors to digest.

Finally, the loser gold stocks may be the best place to park some extra cashola, namely NEM and ASL.

PS: We especially like YARC and MCTL.

Yours truly,
William. Velmer

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SUPER FAST PHONE SERVICE RECOMMENDATION

This Service is a must for the serious investor! We communicate with the subscriber on a one-to-one basis. Quick Market Action, in many cases, secures extra profits or limits further loss. S.A. phone can be activated at any moment in time. We are personalized investor buy and sell communications. Phone Service investors usually receive special treatment concerning commissions and new issues. Subscribe now! (See agreement).

1. On April 28, 1999, our Super Fast Phone Service, Preferred e-mailers and “Free” e-mailers were informed to sell WALB @ $19 1/2 and WALB @ $26.00 - results of buyout by TI Group PLC. We first recommended WALB @ $18.75 on 5/9/95 and our second recommendation on WALB @ $10.25 on 7/23/97. Our third recommendation was on the preferred WALBP @ $16.50 during November, 1998 (takin in account the $1.00 in dividend declared and received). Overall gain: 1% gain, 91% gain and 58% gain.
2. On May 2, 1999, we informed our phone service and e-mailers to sell total position of YPF Sociadad (YPF), Argentina’s largest oil company at $44.00. The stock shot up $7.00 resulting from buyout by Repsol. We initially recommended YPF at around $18.375 on or about 3/8/95. We also received $3.20 in dividends. Our overall gain equals 189%.
3. Also, on May 2, 1999, we recommended to our phone service and e-mailers that they sell the remaining position in GGNC. We first recommended GGNC (Internet casino gaming) @ .30 on 9/23/98. We then recommended a 30% sell recommendation on November 30th @ 3.625, for a 1108% gain. On May 2, 1999, we decided to sell the remaining position @ $1.70 for a 566% gain. We don’t like the action - the company has made promises that didn’t materialize. They promised to file with the SEC. The recommendations were paid for, but were not disclosed properly, shares outstanding were always growing and never reported any real numbers. When one invests in micro-caps, one has to trust and believe management. In our opinion, GGNC cannot be trusted!
4. May 3, 1999, Phone Service Investors, Paid Preferred e-mailers and “Free” e-mailers were informed to buy MCTl @ .375 and RINT @ .06. See recommendation.
5. May 13, 1999, our Superfast Phone Service Investors were notified to buy CBRB @ .41. After the phone service was informed, the preferred e-mailers were notified an then the “Free” e-mailers. See recommendation.
6. July 1, 1999, Superfast Phone Service, paid e-mailers and “free” e-mailers were informed to sell 1/3 position of TLTG @ $12.69 for an 800% gain - recommended on February 17, 1999 @ $1.40. Also recommended two Russian oils, SGUZY and SIBNEFT and reiterated our strong buy recommendation on MTCL.

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