March 16, 2004
New Buy Recommendation from www.saadvisory.com --March 16,2004
If you don't want our material any longer-visit www.saadvisory.com/update and follow the directions listed.
We have not been paid by any of the listed investments unless denoted.
We may buy, sell and or hold any mentioned investments @ our discretion.
Mid-March opinion: The market in our opinion has stalled for the time being and looks like it is self-correction. With continued low interest rate and low inflation and strong earnings
overall -should in our opinion place a bottom or limit any real downsize potential. With continued low employment gains the FED will have little choice but to leave rates @ historic lows, which of
course the market loves! The tech sector has stalled and has given some of its huge upside momentum and looks fairly valued. Many groups for that matter look fairly valued so we see little movement
in either direction. Bush continues to get Bashed and Kerry has nothing "new" to offer except to degrade everything about our current administration. We continue to favor Pres. Bush because he is
favorable towards Business and believes that lowering taxes and offering tax advantage to business will spur economic growth long term. The Demorats of course want to tax us to death and take care of
us from birth to death! At this point in time we remain more defensive and have been locking in huge profits and have reduced our margin to 0 to 5%. In this message we have increased our exposure to
oil and gas stocks -specifically in Junior Oil and Gas exploration companies located with Canada. As mentioned in our last e-mail alert we re-recommended a Russian Oil Giant, namely, SIBNEFT @ $23.00
--currently it is trading @ $33.50--not bad for 2 1/2 months. The Junior Oil and Gas companies that we are featuring- in our opinion have great upside potential during the next 6-18 months. All of
them are attractively priced when one considers their PE and P/CF and production growth that is anticipated.
Within this message we are also featuring a specialty food company that is current exploding with growth (Kahiki Foods KSCI-pinksheets) and has the potential to increase in price by
200% during the next 12 months.
We also are recommending a penny stock, namely APO Health, Inc @ .135 that looks like a sure shot for upside during the next 12 months.
KAHIKI FOODS ( KSCI- pinksheets) $2.45
The company manufacturers authentic Asian-Pacific frozen foods. The company markets diners©es, eggrolls, appetizers, meal components and Pacific Rim sauces to retail super
(Kroger, ect ect) markets, food service operators, membership warehouse clubs (COSCO), convenience stores, vending and military commissaries in the US.
|Select financial Data
||9 months 12/31/03A
||Year ending 3/31/04E
||Year ending 3/31/05E
|net income/sh fully diluted
|shares outstanding fully diluted
||5 million +++
**includes recently issued 600K restricted shares resulting from a completed private placement ( $1,000,000.00)
+++ This increase is due to the anticipated warrant conversion (600k common stock purchase warrants issued as part of the PP listed above). Upon conversion KSCI could and should amass
an additional $2 million if all warrants are converted @ the high-end conversion price, which is dependent upon financial performance.
As present the company is in the final stages of completing a NEW manufacturing facility that will allow production to increase by 5X the current rate.
We believe that KSCI will become a fully reporting OTC BB company within the next 90 day or so and has plan of eventual listing on the AMEX.
The company is also acquisition oriented and could also be a takeover candidate once the rev is ramped up a bit! Organic growth for fiscal 2005 will equal at least 73% over fiscal 2004
( just ending) and earning growth with exceed 100%.
We believe that based upon rev and earnings growth, SEC qualified, greater investor awareness, and listing on major exchange that we could assign a PE of 20 to KSCI.
Based upon fiscal 2005 earnings est. that we formulated after many conversations with management and a PE of 20X being assigned to KSCI that it is very possible that KSCI could be a $9
stock within the 6-18 months.
Please visit the website and review the different foods that KSCI offer:
www.kahiki.com phone # 614 253 3040
The company is gearing up for an IR and PR campaign that will commence as soon as the company becomes fully reporting. We also believe that the fund that bought the recent shares will
aid dramatically in the introduction of KSCI to the "street" in order to create a more fluid market.
We aided in the funding and received a finders fee, and purchased 15k shares of restricted shares from the company @ $1.70/sh and received 3000 warrants. We also purchased 4000 shares
of KSCI common on the open market @ $2.40/ share. We may buy, sell and/or hold our shares @ our own discretion. Our restricted shares are restricted until a registration statement is filed with the
JUNIOR CANADIAN OIL AND GAS PORTFOLIO
We intend to monitor Tusk Energy (tke.to), Real Resources (rer.to), Purcell Energy (pel.to) and Storm Energy (sem.to ) for % gain performance.
We believe that all 4 of these companies offer an exceptional risk/reward scenario for patient long term investors. In our opinion, all 4 are fundamentally cheap and all have
attractive drilling programs in place for 2004. It is the main ambition of Junior Oils in Canada to either be acquired, bought out by another producer or be bought by a large Oil and Gas Trusts that
litter the landscape of Canada . We are extremely Bullish towards Canadian Oil and Gas Juniors and @ this time believe that their PE and P/CF valuations will expand. We believe that the market does
not believe that higher prices are here to stay and for that reason are reluctant to expand multiples. The politics of Canada are another matter!
||price as of 03/07/04
||PE year end US $
||fully diluted production-shares
||403 269 5803
+++ BelAir energy-- 3rd Q only included 27 days of combined operations. PE and P/CF is based on 9 months--Year-end results have not released.
||403 262 9077
||403 264 395
We believe that our PE, P/CF and boe/day are accurate--they may be vary, but we don't assume by very much. We are buying these 4 companies not based on today, but on the promise of
attractive growth potential during 2004 and beyond. For additional information please visit the web sites for all four of these quality Oil and Gas Juniors. The research and available for all of them
is excellent. Very transparent reporting--We give high marks!!
PENNY STOCK BRIEF
APO Health, Inc ( apoa.ob) .135
The company distributes medical, dental and veterinary supplies, health and beauty aids and pharmaceutical products. The company distributes 000's of different products.
As of Feb 1, 2004------- 32 million shares fully diluted fully reporting with SEC
Revenue for 1st Q of fiscal 04 ---$7.4 million
net income/sh .003
The rev dropped from $11 million in the comparable Q. The company reduced its reliance on ow gross profit margin items and are concentrating more on its retail dental supply sales and
medical supply sales which have higher gross profit margins. The company expects medical sales to rise @ the end of the next Q when it releases its new catalogue at the end of March 04.
On Feb 11, 2004 APOA engaged an investment Banker to maximize shareholder Value!
The year (2204) run rate looks to be around $30 million for 04 and earning could be a few cents- this makes us believe that we could get a double out of this situation or possibly be
bought-out by a large concern. We see little downsize risk with situation.
RVIA.ob--- looks like a sleeper @ .07
AFPC.ob --has been rock'n
MSITF-pinksheets--YOU have to buy some of this ! It has huge upside potential--Read
the press--The perfect speculation for an investor that wants to roll the dice ( $1000.00 investment)
TWO OTHER PINK SHEET UNKNOWNS THAT YOU CAN PONDER
ACMM--.12--READ THE NEWS
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