S.A. Advisory E-Mail Update
February 17, 1999
Subject: New Buy Recommendation for Feb 17,9999 -- TLTG for www.saadvisory.com
Dear Emailer's: www.saadvisory.com
This is a brief "new" BUY recommendation on TELTRAN (tltg). We will
expand upon this recommendation during our next "Hard-copy" newsletter,
namely, S.A.Advisory----http://www.saadvisory.com
The Company:
Business: A World Wide Web Portal: ( example yhoo)--see site
http://www.teltran.com----looks and feels like Yhoo--We are very impressed!
2. Will sell phone minutes over Internet phone service . This business
segment has huge potential when one considers the growth of VoIP
during the next 4 years. It is estimated by International Data Corp.
that IP Telephony will carry more than 10% of all voice telephone calls
in the US by the year 2003. TLTG is one of 15 companies that is contracted
to use Australian-developed system OzEmail Interline for making telephone
calls across IP networks touch-tone telephones. This segment of the
business is the "real" money maker and should not be overlooked!!The
contract with OzEmail is until Oct 2001.
Stats:
All information has been presented to us by management conversation on
Feb 17,99 around 11:00 am 1888-teltran---B Lerner (president)
1. 10,000,000 fully diluted shares outstanding
2. 2,000,000 free trading shares
3. management control 75% of total outstanding shares
4. management will be filing with SEC by end of 1st quarter in order to
comply with filing regulations
5. company has NO debt and at present needs no cash infusion
6. The website will continue to be upgraded during the next few weeks and
months to come.
7. The "real" story is the VoIP
8. Management's estimated rev and earnings for 99 and 00
NOTE: These number are generated from my conservation with Byron Lerner
For 99 rev est. $30 million and net income/sh of .30
For 00 rev est. $60 million and net income/sh of .65
9. website: http://www.teltran.com
10. VoIP information; http://www.teltran.com/voip.htm
11. Questions: [email protected] email
12. Bryon Lerner,Pres. [email protected]
13. For all press releases visit website: http://www.teltran.com
NOTE: year-end Dec..
Present price of $1.44-- TLTG is selling at 4.8X 99est.PE
selling at 2.2X 00est.PE
When we compared to comp.
RSLCF-multinational telecommunictions company; including --to distribute
Voice over the Internet services in the Netherlands..Current price around
$26.75--earnings est. for 99 is a -$3.92
IDT Corporation ( IDTC) is a tlecommunications company which offers a broad
range of integrated long-distance telephone and Internet access services.
Net2Phone Direct enables uses to place telephone calls and send faxes over
the Internet for as little as .05/min..Current price $13 year-end Jul 99
.40 and 00 est. .62/sh
Yahoo,Inc. (YHOO) is a global Internet Portal: current price $129.00-
earnings est. of .37 ending Dec 99 and .47 ending Dec 00. A PE of 1000+
In our opinion, for $1.44/share an investor gets huge upside potential
from a low-priced "PURE" INTERNET PLAY!!! When we take a look at the
examples above YHOO, IDTC and RSLCF we see investments opps. that in
our opinion are extremely overvalued by any measure, but when we examine
TLTG we see speculation, but very littled risk and great upside potential.
When we consider management's earnings est. of .30 for 99 and .75 for 00-
we calculate extremely low risk PE multiples, that is , 4.8X and 2.2X
respectively!!Usually Internet stocks are measured by "eyeballs and clicks"
instead of earnings!! If we assign a conservative PE valuation of 15X,
we can calculate a value based upon this est. that management communicated
to us today, that is $4.50 and $11.25 respectively. Actually most Internet
opps. usually trade at much high valuations! If the "street" decides that
it likes this situation the sky is the LIMIT!
We usually do not recommend issues that do not have rev,earnings and
are not fully reporting with the SEC, but we cannot ignore the Internet and
for that matter cannot ignore TLTG!! The risks are present, but the
reward potential in our opinion is much greater and we are willing to
take the plunge!
Note: 52-week range .375--$4.00
We intend to monitor a position of TLTG in our model portfolio for
percentage gain performance.
On Feb 17 we called all "super" fast phone service subscribers and
recommended TLTG at $1.44/sh
On Feb 17 we released an Email to our paid email subscribers ($125.00/yr)
This report will be expanded within our next Hard-copy newletter.
Super-Fast phone service--$550/yr or $1100/yr
Paid Email service per year $125.00
If you would like to subscribe to the email service --send us a check
For $125.00 and your email address and we will inform you first, that is,
before the free emailer's get the current message!
S.A.Advisory, 2274 Arbor Ln #3 SLC Utah 84117
Questio
ns concerning phone service call 1-801-272-4761.
We currently have a position in this opp. and may trade at our own desire.
We have not been paid for this recommendation.
