S.A. Advisory E-Mail Update

October 30, 1997

Dear E-mail Subscribers:

On October 27, 1997 we mentioned that certains stocks that we listed should be considered for purchase. During the past few days, which included today we have purchased numerous opps and will monitor them in a special portfolio in order to demonstrate how herd investors are always wrong and that in time the stocks that we have selected will be huge winners.. Please recall how we have shown huge profits from our out-of-favor low-priced micro-mini caps!

The next five opps are all beaten down and somewhat risk-free! We recom them!

Company name      sybol   earnings Est.    Book   Cash      shares        stock range
                                          Value            outstanding

Applied Magnetics  APM    $4.36(Sept98)   $9.59   $7.10   23.9 million    $18-$60
(current price $22.69)

Applied Materials  AMAT   $1.37(Oct97)    $7.33   $3.00   364 million     $12-$54
(current price $33)

Spectrian Corp     SPCT   $2.32(March98)  $14.00  $10     10.3 million    $7-$66
(current price $22.75) 

Sun Microsystems   SUNW    $2.27(Jun98)   $7.40   $3.00   374 million     $25-$53
(current price $32.94)

Templeton Dragon Fund  TDF  Total assets   $986 million   -around 50mil shares
 (current price $12.25)                    as of Oct 27,97                $11-$18

SUNW-supplies enterprise computing products including workstations,servers, storage subsystems,nettwork switches,software and microprocessors.

APM--supplier of magnetic recording heads and of head stack assemblies for disk drives.

AMAT--develops, manufactures, markets and services semiconductor wafer fabrication equipment and spare parts.

SPCT--designs, manufactures and markets highly linear radio frequency power amplifiers that address the needs of wireless infrastructure equipment suppliers and their service provider customers.

TDF--a closed-end fund that can hold 45% of total asset in China and Hong Kong and the remaining assets in the Asian Pacific areas.. Total assets as of October 27, 1997 were around $986 million --currently around 50 million shares outstanding--On Oct 27, 1997 management has instituted a 10%buy-back. The manager of the fund is Mark Mobius.

As mentioned we intend to monitor these opps in our master portfolio and a special mini-portfolio in order to prove a point about when there is blood in the street that investment opps are almost risk-free. We will monitor TDF in our Global portfolio for % gain performance.

Next newsletter to be release around November 08,1997.

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Yours Truly William Velmer http://www.saadvisory.com

Hotline--1-888-711-7338( $2.00/minute) open account 1-614-439-7375($10 start up-fee)

Copyright © 1997 S.A. Advisory