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S.A.Advisory Newsletter
Newsletter Subtitle
June 26, 2003
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--
NEW BUY RECOMMENDATION - EN POINTE TECHNOLOGIES
-- MARKET
COMMENT FOR JUNE 26TH 2003
Dear Subscriber,
We have not been paid by any of the listed investments within this
email. We may buy, sell and or hold any mentioned investment @ our own
discretion .
If you do not want our material any longer visit
www.saadvisory.com/update and follow the directions or follow the
direction within this message. In this issue: NEW BUY RECOMMENDATION EN
POINTE TECHNOLOGIES NASDAQ---ENPT CURRENT PRICE .80
NEW BUY RECOMMENDATION - EN POINTE TECHNOLOGIES
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The company is a
national provider of information technology (IT) products (hardware &
software) and value-added services with a customer base consisting
primarily of large and medium sized companies and government entities. The
Company uses proprietary and non-proprietary software and systems to
drop-ship materials, repair and operation products to its customers
through an electronically linked network of supplies that include
distributors and certain manufacturers in the United States.
Book value--$2.44
Cash/share--.21
shares
outstanding--6,700,000
52-week range---.31- $1.80
March
2000-------$47.00
location--------- 100 N Sepulveda Blvd 19th fl
El
Segundo, Cal 90245
310-725-5200
SELECT FINANCIAL DATA FISCAL YEAR SEPT 30TH
|
2000 |
2001 |
2002 |
| REVENUE |
$494.4 MIL |
$365.3 MIL |
$257. MIL |
| EARNINGS/ SHARE (LOSS) |
($3.02) |
.80 |
(.51) |
SIX MONTHS
|
2003 |
2002 |
| REVENUE |
$147.6 MIL |
$131.4 MIL |
| EARNINGS/ SHARE (LOSS) |
(.36) |
(.11) |
3 MONTHS ENDING MARCH 31ST
|
2003 |
2002 |
| REVENUE |
$72 MILLION |
$57 MILLION |
EARNING/SHARE
(LOSS) |
(.25) |
(.11) |
Opinion:
Enpt- This is
a very interesting investment opportunity that should not be overlooked.
The Industry segment, namely, Information Technology (IT) appears to
scraping off the 2-3 year bottom and looks ready for solid growth during
the next 6- 12 months. At present ENPT (nasdaq) is trading at less than
34% of stated book and a very very super low PSR ( price to sales ratio)
value of .02--- A value of 1 is considered CHEAP--so @ .02 it is very
attractive based upon this investment variable. With only 6.7 million
shares outstanding and a share price of .80--it yields a market cap of
only $4.6 million with a revenue base of $300,000,000.00.. As this
industry segment consolidates it is very possible that ENPT is a juicy
takeover candidate. This is a very cheap way to buy a whole lot of
business. Trading at 1/3 of book value --looks like limited downside risk
based upon the stated value and what the stock is trading for (that is
.80)--Again as a takeover candidate ENPT could be bought out @ book and
still be very cheap! The sticking point for ENPT is the earning picture,
which has been poor in a poor environment. If ENPT can make MONEY this
stock will FLY HIGH! Wall Street loved ENPT @ $47.00/sh but hates it @
.80--GO FIGURE! Another aspect of ENPT that should be considered is the
fact that REVENUE growth has been very impressive, that is, for the
current quarter 25% over comparable 02 quarter and 12% for the current six
months ending versus comparable 02 numbers.
THIS IS A VERY
POSITIVE FACTOR THAT SHOULD NOT BE OVERLOOKED!
Upon review of May
6th 03 press release--Bob Din stated: " We view these 6 months results as
positive and are hopeful that they point to a return to solid growth for
the remainder of 2003" (President of ENPT)..
No investment that trades
@ .80 is perfect--If it was it would be $10.00/sh. The negatives: Will the
company remain in compliance with its lenders and in a recent press
release-there is mention of an allegation of over billing the City of L A
between $700k - $2.9 million. Can the company return to a profitable
stance?
All-in-all ENPT @ current levels is a great speculation
for investors that wish to invest in a B to B Information Technology (IT)
products and services company that could be a 8 "banger" with calculated
downside risk! ENPT share price (.80) sports a "fire sale" PSR and
Price/Book, the Industry appears to entering a "growth mode",
under-the-radar of almost everyone, insider buying recently and takeover
candidate potential as the industry consolidates.
We rate ENPT
with a Strong Speculative Buy Recommendation! We will monitor ENPT for %
gain performance. Broker contact; Mike Chesler 1-800-227-2226
PORTFOLIO PERFORMANCE SINCE JAN 01, 2003
| SYMBOL |
PRICE RECOMMENDED |
CURRENT PRICE |
STATUS |
| aes |
$3.02 |
$6.35 |
B |
| cpn |
3.26 |
6.11 |
B/H |
| mir |
1.87 |
2.48 |
H |
| elnk |
5.45 |
7.59 |
B |
| eln |
2.46 |
5.00 |
S |
| tyc |
17.08 |
18.80 |
B |
| vtss |
2.18 |
4.99 |
B |
| slr |
3.55 |
3.36 |
B |
| sanm |
4.49 |
6.11 |
B |
| toy |
10.00 |
12.48 |
B |
| intc |
15.57 |
20.45 |
B |
| csco |
13.09 |
16.77 |
B |
| fdry |
7.04 |
14.22 |
s1/[email protected] |
| imax |
4.00 |
8.24 |
B/H |
| lu |
1.26 |
1.87 |
B |
| nite |
4.79 |
6.38 |
B/H |
| pvn |
6.49 |
9.26 |
B/H |
| sunw |
3.11 |
4.70 |
B/H |
| cc |
7.42 |
7.83 |
B |
| afpc.ob |
.14 |
.15 |
B |
| dhb |
1.66 |
3.50 |
B |
| etec.ob |
.36 |
.38 |
B |
| fspx.ob |
.09 |
.09 |
B |
| mctl.ob |
.22 |
.40 |
H |
| mead |
3.12 |
3.05 |
B |
| pdge.ob |
.23 |
.36 |
B/H |
| seto.ob |
.27 |
.22 |
B/H |
| socr.ob |
.30 |
.55 |
B/H |
| dfns.ob |
.60 |
.23 |
B/H |
| targ.ob |
.15 |
.30 |
B |
FEB 23rd 2003
| SYMBOL |
PRICE RECOMMENDED |
CURRENT PRICE |
STATUS |
| pvn |
6.20 |
9.26 |
B/H |
| aes |
3.41 |
6.35 |
B |
| cpn |
2.62 |
6.11 |
B/H |
| dyn |
2.03 |
4.20 |
B/H |
| wmb |
3.58 |
7.60 |
B/H |
| mir |
1.65 |
2.48 |
H |
MARCH 26th 2003
| SYMBOL |
PRICE RECOMMENDED |
CURRENT PRICE |
STATUS |
| iece.ob |
.48 |
.72 |
B/H |
| APRIL 6th 2003 |
| esan.ob |
.32 |
.27 |
B |
| APRIL 22nd 2003 |
| eegl |
1.04 |
1.78 |
B |
| MAY 30th 2003 |
| adg |
16.95 |
17.56 |
B |
| JUNE 26th 2003 |
| enpt |
.80 |
-- -- |
B |
MARKET COMMENT FOR JUNE 26TH 2003
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From the
March-April 03 lows we have seen a very nice re-bound in all sectors of
the stock market. It is only natural that the market have some sort of
breather before the markets attempt to march higher! Longer term we see
much higher prices and most of us will look back and wonder why we hadn't
bought more stocks at "fire-sale" prices. We remain very positive about
America's future- regardless of the dangerous unknowns that threaten us
everyday. We have record low interest rates, large short positions by the
masses, Mutual Funds are not heavily invested, Money Markets and CD's have
such tiny returns-that this is added fuel for the markets and stock owners
today are stronger holders and not very inclined to sell shares for tiny
profits when one considers the PAIN that was endured during the past few
years. Let us not forget that Corporate America is much leaner and the
profit picture could be much more positive than most think. Wall Street
has the tendency to be overly optimistic or overly pessimistic- either the
sky is falling or the sky is the limit!! We remain focused and will
continue to buy cheap stocks and not be afraid because we have a different
plan that the "herd" investor gravitates toward.
Have a Happy 4th of July--We Believe in America and am proud to live in
this great land.
If you want our next pick before it is released
via Email- -send us a check for $40.00 and you will get our next pick
first!
Send check to S.A.Advisory- 521 Bolsa ave -Newport Beach
-Cal-92663
If you want to speak with us and get our picks first -
even before the $40.00 group-send us $650/year for personalized phone
service- For more information call 801-272-4761
Yours truly
William Velmer editor since Feb 1983
Contact
Information
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email: [email protected]
voice:
9499229986
web: http://www.saadvisory.com
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