S.A. Advisory E-Mail Update
December 14, 2000
S.A.Advisory-Dec 14,00 Internet speculations and other stuff Dear E-mailer's: http://www.saadvisory.com To remove: http://www.saadvisory.com/update follow directions! We cannot remove you! We have not been paid by any of the mention securities within this message. We may buy,sell and/or hold any of this securities mentioned within this message at our own discretion. The tax selling has been horrible and it most likely will continue for the next 2 weeks! Earning warnings continue to snuff out any chance for lasting rally! In our opinion the FED needs to reduce rates by at least 1/4% on Dec 19,00! It appears that the economy is slowing rapidly! The consumer is not spending,fuel cost have tainted the season of joy, the stock market created huge wealth and took it all back and credit card debt is high! The FED needs to act. They usually raise too much and too long and reduce rates too slow. We continue to buy heavily discounted tech stocks and select penny stocks--most are down 70%-90% from March 00 highs. This is not time to run for cover, but in our opinion it appears to be the right time to be a BUYER..We believe that the herd is always wrong and most of the major brokerage firms are usually on the wrong side as well! The internet stocks have been killed twice and then the remains burned..Below you will find 3 situation that deserve a look see! 1. EDGR(nasdaq)-An internet provider of business,financial and information about public companies. The company serives this information primarily from the sec. The source of revenue comes from; contracts with corporate customers, subscribers to its Web Site Service and ad rev. bk-$2.32 cash-$1.43/sh debt-0 shares outstanding-14.9 million 52-week range--$1.50-$16.00 Insiders control 65%, institutions 12% Rev doubled from $2.9 to $6.7 mil for 9 months, but losses continue..We believe that EDGR is most likely a takeover candidate.. This company is the only entity that does what it does!! Every- one uses EDGR that is involved in the stock market..The stock is down sharply because of tax selling--should rebound somewhat during Jan01..EDGR supplies all SEC filing !!!!In our opinion EDGR looks attractive at current levels CURRENT PRICE $1.69 2.STMP(nasdaq) The company provides Internet mailing and shipping service to small and large biz, e-commerce vendors and individual consumers. For the 9 months rev reached $9.9 million up from 0. The losses were $144 million vs $23 million. Results reflect 10/99 launch of the Internet Postage Service. bk-$9.89 cash-$5.88 $290,000,000.00 cash debt-nil shares outstanding-49.4 million range-$2.219-$83.50 Insiders-64%---Institutions 32%---(they really got toasted) Overview: A real slaughter--severe tax selling is evident--currently trading for less than 1/2 cash and only 25% of book..Again, in our opinion stmp is a possible takeover candidate( a huge cash hoard). If I was management--I would discontinue the current operations and become a corporate shell!!!The stock would fly on the new!!! For $290 million stmp could buy lots of value!! One buys stmp as a very interesting candidate for a Jan 01 bounce, takeover candidate and a long shot that management will wake-up and get out of the Internet stamp biz. They could also liquidate!! Worth the shot @ $2.54 3.FRTI(otc bb)This company is a financial media entity that provides investors with the information and tools they need to make investment decisions. The company also owns BULLSESSION.COM website, which offers active investors a subscription service of streaming real-time quotes and updates stock portfolios--During Aug 2000 frti acquired REDChip.com(a research cmpy). Rev for 6 almost doubled from $2.8 to $5.8 million( lost $2.7 million during recent 6 primarily due to personal, administrative and amortization expenses). bk-$1.53 cash-$.37 debt-nil shares outstanding-15.2 million 52 week range-.625-$14.25 Insiders 67% Overview: The perfect tax selling candidate--We look for a solid bounce during Jan01! In our opinion frti will become a viable entity..Currently you can buy frti @ less than 50% of its stated bk. WE PERSONALLY LOVE THE BULLSESSION.COM SERVICE!!WE US IT EVERYDAY AND ALL DAY!! We give the service an A+!!!! This does not include the many free services that frti offers--Management is very conservative and don't hype the investment community. We loved frti @ $5.00---now we can buy 6.5 times the amount. We are not a seller, but instead a buyer!!Personally bought some @ .75 today!--If I am wrong--1. it is only money 2.It is write- off. OTHER STUFF MCTL(OTC BB)----BUY AFPC(OTC BB)----BUY FCIN(NASDAQ)----STRONG BUY HMLD(NASDAQ)----BEEN SLAUGHTERED IN THIS STOCK-DOWN AROUND 80% FROM REC PRICE--WE BOUGHT @ .625---SPECULATIVE BUY--SUPERMARKET CHAIN -REV $650. MILLION. IF WE ARE WRONG-A WRITE-OFF, WE HAVE ALREADY LOST A SMALL FORTUNE--WHAT'S A FEW MORE THOUSAND!! PCSH(OTC BB)---BUY YOURS TRULY, William Velmer