S.A. Advisory E-Mail Update
November 15, 1999
S.A. Advisory update for November 15,99
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INVESTMENT BRIEFS
1. OSCR--recommended on Oct 9,99 @ $3.31-current price $4.50
Review Oct 9th e-mail for complete details.
From the time that we released our initial recommendation many news items
have been released as press from the company. We still need many questions
answered, but remain invested in the shares. The real financials will hopefully
be released soon via SEC filing for fully reporting status. The numbers have
been explained this way! For the third quarter ending Sept 30th 99-Total rev
for the parent company(oscr) are quoted @ $80 million -that number is broken
down into 2 areas: 1. Shopps.com Inc. - virtual mall and e-commerce had rev
of $20 million and net of $6 million. 2. OSCM's communication division, a
developer of Internet applications for fax and IP telephony reported rev of
$60 million and net of $14 million. The total number is $80 million in rev
and $20 million net. These results have not been verified. The recent press
has been very positive, but also very confusing. The company needs press that
supplies investors with more answers than questions--this has not been the case
todate! The recent spin-off and dividend announcement! The spin-off actually
allows the street to value the shopps.com ( spin-off-all said and done OSCR
will retain 51% of ( symbol-SHPS), shareholders of shps own 45% of the operation
and OSCR shareholder's get a 4% dividend ). The spin-off we assume was structured
this way so OSCR would be able to capture the rev and earnings from the sub
that was spun-off. OSCR now has roughly $50 million of SHPS stock based upon
current share valuation of SHPS. We are hearing, but have not verified that a
secondary offering for OSCR is possibility and of course once 10-SB is filed with
the SEC that NASDAQ filing would obviously take place! At present 16 million plus
shares of OSCR are outstanding-we understand that this number is the fully diluted
value. We have seen no insider selling in OSCR-which is usually a bad sign!
We anticipate more news this week, but have heard this before--We hope that if news
does come that it supplies the shareholders with valuable information instead of the
recent sound bites! We still rate OSCR with a speculative buy rating. If all the
information that has been reported remains accurate then this stock will fly high!
Concern Shopps.com Inc.(shps-otc BB ). This is the recent spin-off which operates
the virtual shopping mall and the e-commerce aspect. We hear via the grapevine that
shps has been selling between $100k- $150k/day in products. They recently created
an on-line Auction( we hear automobiles have been sold via the site). We hear and
also have verified that both companies will be at Comdex, Israel during the end of
November. According to promoter and over 5% shareholder in SHPS --that the company
is fully reporting with the SEC!
In reality-If you are a player within the Internet and a % of your portfolio is geared
towards this business model and can handle the risk associated with Internet companies-
then it is in our opinion that both of these situations may belong in your speculative
and risk oriented account.
It is in our opinion that if you decide that both OSCR and SHPS should become part
of your stock stable then most likely you should purchase both, which of course
spreads out the risk, but also increases the reward. We understand that SHPS only
has 2 million shares within the float ( does not include recent spin-off shares to
OSCR shareholders-this doesn't happen until Dec 1, 99). At present SHPS is quoted
$5- $5 5/8. We hear that more news will be released this week. If press
is positive and doesn't create more questions than answers it will be a positive for
further stock appreciation.
PS. The accounting firm that both companies are using is very positive and valid.
The PR firm located within NY in my opinion is terrible and is harmful. The
firm that they are using usually does not handle mini-micro's so they really
don't give a damn nor do they understand them.
We currently own a position in both investments.. Our position in SHPS was purchased in
a private transaction from a 5% shareholder below the current market price. We purchased
$10k of shps from that shareholder. We have not at this time been paid to promote or
recommend either issue. We may at some point in time be hired to produce a
corporate profile on one or both issues. We currently own 8k of OSCR at an average purchase
price of $3.00/share that we purchased in the open market.
2. ARTM---great earnings-check out recent press--.32 trailing 12--stock looks like it
wants to go higher. Managements still releases terrible press releases. For the
quarter rev doubled and earnings 150% increase. If we had an information oriented management
team then this stock would most likely be trading at $2-$3.. I also think that the recent
acquisitions made by management will turn out to be losers!
3. NYSE listed opps that should be purchased in our opinion --new dogs of the nyse--
just a few---cle,gbx, per, cgx,xrx---These have all been beaten down--some have not
been this low for 2 years.
4.RINT---shows some life
5.TMED---looks good
6.LATS--great numbers
7. FCIN--most likely be our stock-pick-for-the-year 00-----Fundamentally a super-cheap sleeper!
The press that has been release recently has been great---All this For a nasdaq at $2.00
8.PCSN--making higher highs!
9. HMLD---belongs in every account--this will be takeover candidate one of these days.
10.Our Russian Oils have bee flying high, Lukoil, Sibneft, Surgutneftegaz-broker-Greg Nelson
1-800-269-9460
The Play for Investors with lots of GUTS----APM @ .47 on NYSE --If they can turn this dog
around --This will make us a large fortune --We have recently purchased 50K shares at .40
This is heavy risk!!!!
We have not been paid for any of the listed stocks mentioned within this e-mail. We did buy
$10k of SHPS from a 5% shareholder. Our opinion on shps is a non-biased one.
PSS. Watch for our new newsletter-- coming soon!
PSS. Visit our vitual mall --Purchases on our site helps us so we can help you!
Happy Investing. William Velmer http://www.saadvisory.com