S.A. Advisory E-Mail Update
May 18 , 1998
Dear E-mailer's: http://www.saadvisory.com
Update and thoughts:
- Cable-link (nasdaq-bb---CBLK)current price: $3.18
We first recommended CBLK on March 1, 1996 @ $1.35/share ( takes into
account the 20%,50% and 10% stock dividend).
Core Business: Refurbishment, repair, and sale of prviously owned cable-tv
Book value:around $1.00 stated first quarter:
fully diluted: 2 million shares:
Important: On April 8, 1998 CBLK entered into a letter of intent to aquire
substantially all of the outstanding capital stock of PC and Parts, Inc.
The company is engaged in the business of providing computer hardware and
services, as well as designing and implementing wide area and local area
SELECT FINANCIAL DATA
1996 1997A 1998Q(a) 1998E
revenue 8.2 million 10 million 2.7 million 18 million
income/share .01 .45 .08 .62
fully diluted 1.3 million 1.9 million 2 million 2million
We believe that the aquisition will be completed within days! The combined
companies will employ 130 persons. The above numbers assume the completed
aquisition.. It will not be dilutive and is being purchased for cash!
We also believe that an attractive NOL will result from the transaction.
The actual PE for 1997 numbers is 7X!
The estimated PE for 1998 numbers is 5.1X!
The actual PSR for 1997 numbers is .6
The estimated PSR for 1998 numbers is .35
Anticipated growth rate: 98---80%
CBLK is under owned and under-followed! It is currently trading an almost
risk-free multiple of 7X(A) and 5.1X(E).The PSR is also extremely favorable
demonstrating a low risk investment. With revenue growth anticipated @
80% and earnings growth of 38% ( note: aquisition only will account for
7-months--on an annualized value-rev would be atleast $25 million).
It is our opinion that CBLK should trade at a PE of 10X actual and 15X est.,
which would result in a share valuation of $4.50 and $9.30---A far-cry
from current levels.. Management in our opinion has shown the ability to
turn-the-company around yielding big earnings growth ( see 1997 compared
to 1996). The managemnet has rewarded shareholders with many forward splits
and comtinues to look for aquisitions for continued growth! The PSR also
indicates an undervalued pricing of CBLK! At 1.X sales CBLK would trade
at $5.33(A) or $9.14(E)..
This situation looks very cheap to us at current levels and we will comtinue
to monitor this opp. in our portfolio's for percentage gain performance.
Concerning NASDAQ listing: Filing is anticipated: The share price is the
only non-qualifying factor.
broker #-----Mike chesler--8003311355
A FEW PLAYS
********************* MUCH BETER THANT LAS VEGAS********************
- CAFE( nasdaq-bb) current price .18-.22
recently 10 for 1 reverse
as of march 31, 1998--8.6 million shares outstanding -according to 10K
book value as of Dec 97--.22
new management--very small salaries
cash----as of Dec 97--$1.2 million
NOL------$35,000,000--------this is a BIG PRIZE--In our opinion makes this
opp. worth much more than current price!
It is quite evident that CAFE has been a SUPER DOG for years--but we did
not pay $10, $20, $30 or even $40/share, but instead a few pennies!! An
interesting speculation in our opinion for "players"! Could be used as
a SHELL! We are not sure if the current business is viable, that is, the
Country Star restaurants ( currently 2 in operation).
The company is actively looking for acquisitions and looking for a PR firm!
broker: 8003311355--Mike Chesler
Risky---Take a HARD loooooooook!
Amqt------Ameriquest is primarily a national valued added wholesale
distributor of micro, mini and mid range computer and related products to
value added resellers and systems integrators.
- reduced size of company dramatically
- reduced debt by $30,000,000.00
- March 31,98---cash of $3 million
- credit-line in place
- range 52-wk---.06--.31
- 69 million shares outstanding--most held
- Has an internet site; sells over the NET---Could become the money
- Revenue for the first quarter was $13.6 million with a small profit!
- Another HATED DOG that traded at much high prices (NYSE listed).--The
little stocks are emerging from a deep sleep--this one is a great shot
in our opinion!!!
FOR PLAYERS THAT LIKE TO PLAY!**********************************
This little unknown opp. looks like it going to pop ---PR program looking
to get the price up so as an equity sale can be put in place!! Only 13
million shares outstanding with only 1 million shares in the float!!
The name is Wordcraft systems WORC-nasdaq-bb. They produce a multi-
functional software program for information transfer. We believe a "play is
SEG on May 17,1998 announced that the disk drive recession is almost over
and a Bottom has been reached!! This should boost our APM share tommorrow
in NYSE trading--We have been adding shares recently to our own portfolio at
$7.375/share...This has been a DEADLY DOG For us!!! We first recommended
APM at $22.69.
We still favor CS, CYMI, --Our WDC should move tommorrow as well-- We
recommmended WDC @ $15.75 during mid Dec 97.
We are watching ipec and sfam---(pair) starting to look cheap!
We are also watching almi for a re-entry point below $2.25.
We are also watching gegi for a re-entry point below $2.50.
SETO looks great at present levels--trading at only 8X trailing.
SCTI looks attractive still as a speculation!
PCSH waiting for June 98 when more stock is released by courts--should
create BUYING opp!
TGSK---We placed a sell on 50% of our position because it flew skyward
190% within 45 days of our recommendation! We would be a fool not to take
profits !! We still like the opp. and the number are compelling, but
TGSK is only a distributor and in our opinion does not deserve a higher
multiply than 10X--It is not listed on any major exchange, to date does
not file with the SEC and I still donot like how it trades!! With only
a few million shares in the float (2.2 million) I cannot understand how this
stock trades millions/day!! I donot agree with the "short" scenario--If
you have a level 3 NASDAQ machine it is obvious that this is not the case!!
We believe that since earnings have just been released by TGSK recently--
(excellent number) and with all the news out- the "shark may trend lower
---with the volume that appears available we could see $1.25-$1.50 until
the next earnings report is released (90 days).
We intend to recommend "new" opps. very soon so look for E-mail!!!
If you would like to receive recommendations before our E-mailer's--YOU
need the super fast phone service---$450/year ---WE CALL YOU PERSONALLY!
For more information call 1-801-272-4761 leave message!
S.A.Advisory buys and sells stock recommended! Our trading habits vary
according to how we feel. We most likely bought all recommendations prior
to release.. If we produce a Corporate Profile and have been paid for the
report--we fully disclaim!!!
PS::VTPI---coming back to life---other cheap shots webp,
See you soon!! http://www.saadvisory.com
Hotline--1-888-711-7338( $2.00/minute) open account 1-614-439-7375($10