S.A. Advisory E-Mail Update

S.A.Advisory
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S.A.Advisory Newsletter

New Buy Recommendation from S.A.Advisory for August 30th 2004
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Dear Emailer's:

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We have not been paid by any of the listed investment within this alert.

We may buy, sell and or hold any listed investment within this message at our own discretion.

Overview:

We have remained bullish and fully invested during the past few months of this correction and seen gains turn into losses. We are not shaken by the faint-of-heart investor types that hide under a tree when the winds of uncertainty blow from all directions. We have run-away oil, terrorism from sub-humans, political barbs, economic questions and corporate numbers that show limited weakness--ALL of this has kept investor types either hiding in the house or sitting on the beach with body Armour and gas mask ready.

Wall Street is always scared unless things are thought perfect and of course when that happens (like,like the year 2000)the gurus of the street are extremely bullish and recommending stocks with PE's of 100 instead of PE's of 10!

We remain Bullish and continue to average down on stock that we bought months ago and now have dropped 30-50% during the past "sky is falling" chant from nervous investor types! The most difficult time to put your money on the line is when everything looks like the end of world.

As you review our past recommendations you will see that we make our "big" MONEY when we are able to buy stocks when it appears that the bottoms is not insight and the NASDAQ is headed toward ZERO! We are not OTC or NASDAQ CHICKEN! We have "Big Balls" when it comes to investing and will never be herded like most of you that are alway02 scared!

Some stocks that we currently favor--we have averaged down on many and bought new positions in other --Please review some of our selections: WE especially like tech!

A--average down
BB--bought new positions
   
amat--$16.36 A
flex--$12.85 A
vsh--$12.84 A
emc--$10.75 A
slr---$5.39 A
mot--$16.59 A
txn---$20.34 A
nok-- $11.86 A
sndk--$23.86 BB
lu----$ 3.15 A
cnxt--$1.61 A
brcd--$5.02 BB
vrts--$17.86 BB
issi---$8.40 BB
asyt--$4.83 BB
ovti--$10.95 BB
intc---$22.12 A

It should be noted that many of these stock we bought @ much lower prices and sold into strength during first q of 2004. WE believe that many have fallen to levels that they have become very attractive to us!

MICRO-CAP OVERVIEW:

THE LOW-PRICED ARENA HAS BEEN HIT AS HARD AS THEIR COUSINS AND IN OUR OPINION IT IS NOT THE TIME TO HIDE UNDER THE COUCH AND TAP YOUR HEALS AND WISH FOR A QUICK TRIP BACK TO KANSAS.

THE TIME TO BUY IS WHEN PRICES ARE LOW AND PLANTING SEASON IN OUR OPINION IS @ HAND. WE ARE NOT OTC CHICKEN!

OUR NEW MAJOR BUY RECOMMENDATION WILL BE DISCUSSED AFTER THIS SECTION---SWANK, INC. SNKI.PK----.70

FIRST:

ENPT--MOST LIKELY THE CHEAPEST LOW PRICED NASDAQ STOCK IN OUR WORLD! WITH REV OF $300,000,000.00 AND A MARKET-CAP OF ONLY $14 MILLION. ENPT IS PROFITABLE, HAS CASH, TRADING BELOW STATED BOOK,VERY LOW PRS,PE,P/CF AND P/B. THIS STOCK SHOULD BE $4.00-$5.00/SH INSTEAD OF $2.00 AND IN OUR OPINION HAS THE POTENTIAL TO BE A TRADE-OVER CANDIDATE.---STRONG BUY RATING WE HOLD 15K

ACMM.PK--THIS UNKNOWN TECH COMPANY IN REALITY HAS BEEN SEEN BY BILLIONS OF PEOPLE AROUND THE WORLD AND THE STOCK IS TRADING FOR ONLY .10/SH ON THE PINKS. DURING THE SUPER BOWL YOU AND I WATCHED THE BIG SCREEN ON THE TV AND DURING THE DNC IN JULY 2004 YOU WATCHED (MAYBE) JOHN KERRY AND HIS CREW OF CRY BABIES TELL US ALL HOW BAD IT IS, BUT BEHIND HIM WAS A GIANT TV SCREEN.

THE TECHNOLOGY USED IN THE TRANSMISSION OF THIS PICTURE ON THIS SCREEN IS ACMM.PK'S!--AT PRESENT THERE ARE ONLY 10 MILLION SHARES OUTSTANDING. MANAGEMENT IS NOT SHAREHOLDER FRIENDLY, SO DON'T WASTE YOUR TIME--IN TIME THIS COMPANY WILL BE BOUGHT OUT AND THE PATIENT INVESTOR TYPE IN OUR OPINION WILL MOSTLIKELY BE REWARDED WITH A 10-20 BANGER!! THIS IS A GREAT SPECULATION INSTEAD ON HEADING TO VEGAS! WE HOLD 40K

APOA.OB--A MEDICAL DISTRIBUTOR THAT HAS HUGE UPSIDE POTENTIAL. FOR THE 9 MONTHS REVS REACHED $30 MILLION WITH A TINY $100K LOSE-PRIMARILY RESULTING FROM STRONG EURO. TRADING NEAR 52 WEAK LOW-CURRENT PRICE OF .05 IS A NO-BRAIN IN OUR OPINION. AROUND 35,000,000 SHARES OUTSTANDING.

I THINK THIS COULD RETURN TO RECENT HIGH OF .45 AS DOLLAR BEGINS TO GET STRONGER( INTEREST RATE HIKES AID IN DOLLARS STRENGTH). I SEE ALMOST ZERO DOWNSIDE RISK IN THIS OPPORTUNITY AND COULD BE A TAKEOVER CANDIDATE. APOA.OB IS FULLY REPORTING WITH THE SEC. WE HOLD 125K

SPAL.OB---A SPANISH TELECO THAT SHOULD SHOW SALES OF ATLEAST $20 MILLION AND EARNINGS OF .04 ENDING DEC 31ST 04. FOR ONLY .21 YOU HAVE TOO TAKE A POSITION--FULLY REPORTING WITH THE SEC. WE HOLD 30K

KSCI.PK--ON THE PINKS BUT WILL BE FULLY REPORTING VERY SOON. GROWTH HAS BEEN IMPRESSIVE FOR THIS RAPIDLY GROWING FROZEN FOOD MANUFACTURER. SEE CURRENT PRESS. RECORD REV AND EARNINGS JUST REPORTED. ATTRACTIVELY PRICED @ $2.60-WE HOLD 16K

AGTT.PK---VISIT WEBSITE AND DECIDE IF THIS SITUATION IS WORTH MORE THAN .024--WE HOLD 140K

MSITF.PK--THIS COMPANY PRODUCES TEST KITS FOR NUMEROUS DISEASES SUCH AS AIDS,TB,WESTNILE AND MANY OTHER DISEASES. WE ARE WAITING FOR FDA APPROVAL FOR THEIR AIDS TEST KITS IN THE USA! WHEN THIS HAPPENS THIS STOCK WILL FLY HIGH! VISIT WWW.PINKSHEETS.COM AND REVIEW THE ZILLIONS OF PRESS RELEASES THAT THIS COMPANY HAS RELEASED DURING THE PAST 12 MONTHS. SUPER SPECUALTION @ .005 WE CURRENTLY HOLD 1 MILLION SHARES

NEW BUY RECOMMENDATION
SWANK, INC.
(PINKSHEETS SNKI.PK---.70)
FULLY REPORTING WITH THE SEC
FULLY DILUTE SHARES OUTSTANDING--5.5 MILLION
BOOK VALUE---.50
CORPORATE PHONE NUMBER 508-222-3400

BUSINESS:

ENGAGED IN THE MANUFACTURE, SALES AND DISTRIBUTION OF MEN'S BELTS, LEATHER ACCESSORIES, SUSPENDERS AND MEN'S JEWELRY. THESE PRODUCTS ASRE SOLD BOTH DOMESTICALLY AND INTERNATIONALLY, PRINCIPALLY THROUGH DEPARTMENT STORES, AND ALSO THROUGH SPECIALTY STORES AND MASS MERCHANDISERS.

THE COMPANY HAS DURING THE FOURTH Q OF 2003 DISCONTINUED ITS BELT MANUFACTURING OPERATIONS IN THE USA AND MOVED THE DIVISION TO LATIN AMERICA AND CHINA.

CURRENTLY HAS A HUGE DEFFERRED TAX ASSET OF $9.5 MILLION THAT CAN BE USED AGAINST TAX LIABILITY AND MAY BECOME EXTREMELY VALUABLE IF THE COMPANY IS ACQUIRED OR DOES AN ACQUISITION.

COMPANY HAS TAKEN NUMEROUS ACTIONS TO REDUCE ITS OPERATING LOSSES AND OBTAINED A $25 MILLION LINE ON CREDIT FROM WELL FARGO.

GROSS PROFITS EXPRESSED AS % OF NET SALES INCREASED TO 34.1% FROM 29.5%

THE HEADCOUNT HAS ALSO DRAMATICALLY BEEN REDUCED FROM 456 TO THE CURRENT LEVEL OF 251 AS OF JUNE 30TH 2004

NOTE: CAREFULLY REVIEW THE 4TH Q NUMBERS BELOW BECAUSE THIS IS THE WHOLE SHOW !!!!!!

DEC 31ST YEAR ENDING
A=ACTUAL
E=ESTIMATE
2001A 2002A 2003A 2004E
REV 87M 100M 95M 105M
NINE MONTHS EARNING
(LOSS)
(2.73) (.40) (.68) .07
FOURTH Q EARNING
(LOSS)
(.12) .39 .19 .30
YEAR-END EARNINGS
(LOSS)
(2.85) (.01) (.47) .37

IN OUR OPINION 2004 IS THE TURN-AROUND YEAR FOR SNKI.PK --SEE THE ESTIMATED NUMBERS THAT MAY END UP BEING TOO CONSERVATIVE.

2ND Q RESULTS AND 6 MONTHS RESULTS

2004 2003
SALES 24.7M 22.4M
EARNINGS
(LOSS)
.09 (.10)
     
SIX MONTHS (.12) .39
SALES 43.6M 40.7M
EARNINGS
(LOSS)
(.05) (.58)

THE 2ND Q IS THE BEGINNING OF THIS NEW COMPANY IN OUR OPINION! THIS COMPANY HAS NEVER BEEN PROFITABLE DURING THE 2ND Q! THE THIRD Q IS THE BACK TO SCHOOL Q AND SALES AND EARNINGS SHOULD EASILY PICK UP AND THAT IS HOW WE ASSUME THAT SNKI.PK SHOULD EARN AROUND .12/SH. THE 4TH Q IS THE BIG BANANA AND EARNING OF .30 SHOULD BE A NO-BRAINER!!

PLEASE KEEP IN MIND THAT MOVING TO CHINA AND A REDUCTION IN WARM BODIES IS GOING TO MAKE THIS COMPANY INTO A VIABLE BUSINESS AGAIN AND ASTUTE INVESTORS WILL REALIZE THE HUGE UPSIDE POTENTIAL THAT EXISTS IN THE SHARES OF SNKI.PK TRADING @ .70.

IF WE ASSIGN A CONSERVATIVE PE OF 10 TO SNKI.PK SHARES THEN A $3.70 SHARE PRICE RESULTS---5 TIMES THE CURRENT VALUE AND IN OUR OPINION WE THINK THAT THIS WILL HAPPEN WITHIN SIX TO NINE MONTHS. WE BELIEVE THAT THE NUMBERS WILL BE THERE! AT CURRENT LEVELS SHAREHOLDERS OWN A HUGE PART OF THIS COMPANY--AS MENTIONED EARLIER- THE MARKET-CAP IS $3.3 MILLION AND THE SALES ARE $100,000,000.00--THIS IS A BIG NUMBER.

WE RATE SNKI.PK WITH A STRONG BUY RECOMMENDATION @ CURRENT LEVELS.

PS---WE DON'T CARE THAT IT TRADES ON THE PINKS--WE WILL MAKE MONEY REGARDLESS.

HAPPY INVESTING
YOURS TRULY,
WILLIAM VELMER
EDITOR 1983

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