S.A. Advisory E-Mail Update
August 10,1998
Subject: Major Buy Recommendation on the Oil Patch part #2
Dear E-mailer's: http://www.saadvisory.com
In our last e-mail we informed our readers that in our opinion ,the whole oil sector was extremely oversold, overlooked and seriously undervalued! At that time we featured and recommended a few opps. ( apa, keg & hp ) . We have decided to add additional oil related issues to our list and form a portfolio of issues that in our opinion will deliver HUGE gains for the patient investor during the next 6 to 18 months!! We have never been as bullish towards this group in the 15 years that S.A. Advisory has been in business! We intend to monitor this group for percentage gain performance in.
COMPANY SYMBOL DATE PRICE DESCRIPTION BK C/S E/SEST. YR. Apache corp apa 8/03/98 $25.75 producer O%G $19.27 $1.22 .81/dec98 Benton O&G bno 8/10/98 $8.375 producer O&G $6.00 $5.22 -.74/dec98 BJ Services bjs 8/10/98 $20.25 oil services $12.8 $.03 $1.89/sep98 Diamond Off do 8/10/98 $30.625 drill offshore$12.14$2.76$2.77/dec98 Halliburotn hal 8/10/98 $33.50 oil service $10.23 $.03$2.12/dec98 Helmerich & P hp 8/03/98 $20.18 produce & drill $16.27$.73$1.57/sep98 Key Energy keg 8/03/98 $10.69 oil services $8.03$1.47$1.22/jun98 Seagull sgo 8/10/98 $12.94 producer O&G $10.32 $.28 .11/dec98 Smith Int. sii 8/10/98 $26.12 oil service $12.53$.68$2.73/dec98 Tidewater tdw 8/10/98 $28.18 service offshore $17.56$.76$3.79/mar98 Transocean rig 8/10/98 $35.44 driller offshore$17.06$.58 $2.86/dec98 UTI Energy uti 8/10/98 $9.625 domestic driller $8.70$2.74$.90/dec98
Part II
Company 52-week range P/S total debt/equity(mrq) most recent qt apa 24.50-45.06 2.10 .73 bno 7.375-21.87 1.46 1.60 bjs 17.75-45.37 .99 .28 do 28.56-67.50 3.78 .24 hal 30.69-67.50 .90 .20 hp 19.25-45.56 1.74 00 keg 9.50-38.87 .45 2.42 sgo 11.375-27.625 1.47 .72 sii 22.81-87.875 .58 .75 tdw 25.00-70.50 1.44 .04 rig 33.125-60.50 3.61 .46 uti 8.00-48.625 .69 .17
We intend to monitor 1000 shares of each investment opp. for % gain performance! Our starting valuation equals $261,680.00!
MARKET OPINION
We have believed for quite some time that the "DOW" was and still is overvalued and the nasdaq and otc stocks have been undervalued! We don't believe that a BEAR market has begun! We still have low interest rates, very low inflation and high consumer confidence. In our opinion the key to successful investing is to buy fundamentally cheap and out-of-favor investments. We believe that for the near term most third tier otc's will remain out-of-favor until the second and first tier nasdaq's start to appreciate. We are not negative on the third tier, but assume little action within the group and one might assume that tax selling might depress the group even further. If a small stock does not receive any promo it is just going to sit! The motivation for all small-caps is EARNINGS! Long Term SETO, PCSH, EPLN,TGCN,SCTI,CBLK,ISOL,WEBP and others looks attractive--patience is the KEY for successful investing in this group..
Finally, our main theme of this e-mail is the oils and related issues--PLEASE take a serious look!! OIL & GAS will not remain at depressed levels forever so be positioned today for tomorrows PROFITS! .
Yours truly, William Velmer http://www.saadvisory.com
PS: Next hardcopy newsletter coming soon!
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