S.A. Advisory E-Mail Update
March 30, 2002
New Buy Recommendation on PVN from S.A.Advisory for March 30,2002 Dear E-mailer's www.saadvisory.com We have not been paid by any list security within the e-mail message. We may buy,sell and/or hold a position in listed securities within this message @ our own discretion. If you don't want our material any longer-you must remove the address yourself-WE CAN'T! visit www.saadvisory.com/update NEW BUY RECOMMENDATION PROVIDIAN FINANCIAL CORP $7.55 (NYSE)----PRICE $7.55 complete recommendation will be featured within our soon to be released hardcopy newsletter. Business: Integrated card business offers credit card loans and generated primarily through VISA and MASTER CARD. Year-end #'s for 12/31/01 earnings .49 versus $2.34 for 00 The decrease in earnings for 01 result reflect delinquency and loss trends and economic conditions. To review total losses for 01 please review FEB 7, 02 year- end press release . It is easy to conclude that management is executing a viable business plan in order to return to much higher level of profitability during 02 & 03 and beyond. The most important aspect of this release is that the new business plan was excepted by the Banking regulators. WHY WE ARE SO BULLISH ON PVN 1.Merrill lynch upgrades a $4.00 from neutral to BUY--ML never recommends low price stock unless it is a total hole-in- one shot! 2. PVN settles nagging lawsuit for $38 million versus $380 million 3. Morgan Stanley upgrades PVN from equal weight to OVER WEIGHT! Most of the 24 brokerage firms that monitor this stock still have a hold rating on PVN--They are basically all cows and it is only a matter of time before they start chasing this winner. 4. Jefferies and Co. changes rating of PVN from Sell to Accumulate (March 22, 02). 5. Zacks upgrades PVN and calls it the one of the healthiest picks for 2002--target $10.00----very conservative--We think that if execution is on target that PVN could by a $25-$30 within 2 years. 6.Technically PVN's chart is extremely bullish. 7. Buyout rumors already being considered. 8. Other publications have turned bullish. Jagnotes.com 9. www.barchart.com gives PVN 96% out of 100% as a BUY for short and long term. 10. www.vectorvest.com another technical site rates PVN with a BUY recommendation. 11.Earnings EST. for 02 and 03 most likely will be upgraded because of strong economic recovery in place resulting from recently released GDP revisions, consumer spending and consumer sentiment. 12. PVN rated highest % gainer on the NYSE--Lots of "new" eyes will see this rating within days and they will become potential buyers. 13. Still trading near 52 week low . 14 Management raising cash, streamlining operations and focus on money making divisions and discontinue losing operations In our opinion: All of the above reason bodes well for exceptional appreciation during the next 12 months and beyond -unless they taken-over by another Bank Card company- ie: HI WE INTEND TO MONITOR PVN FOR % GAIN PERFORMANCE IN OUR "ACCOUNTING PARANOID PORTFOLIO" WE RATE PVN WITH A STRONG BUY @ CURRENT LEVELS. -------------------------------------------------------------------------- Concerning KHL.V---As you know it has been halted for over 1 months time. In this case no news is good news! If the deal does not happen khl.v will still prosper and we remain Bullish towards this junior O & G in Canada. Management in our opinion is working for shareholders and has just as much to gain or lose. We believe that news will be out soon!
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