S.A. Advisory E-Mail Update
February 13, 2000
New Recommendations for Feb 13,00 from www.saadvisory.com
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We have not been paid by any of the listed investment ideas within this message.
We have purchased all listed investments prior to this message and may buy,hold and/or
sell our position at anytime! We may trade these issues whenever we please. Before
investing consult your financial planner, review all sec filings concerning the company
in question. Our overall strategy is long term investing and we are geared towards
fundamentals.
WITHIN THIS MESSAGE: DSFT,OSCRE,CLOPF,COGE,BI,WM,UNM
NEW BUY RECOMMENDATIONS: BRIEFS
These next few selections will be monitored within our NYSE Orphan Portfolio for % gain
performance!
1. Unumprovident UNM-symbol
52-week range-----$13.75----$59.50
current price----$15.00
UNM- insurance-provides disability, specialty risk insurance, long term disability, life and accident.
Book value---$20.57
Debt---very low
shares outstanding--240 million
Dividend---.59
99 98
REV 9.4 billion 8.6 billion
NET INCOME $2.66 * $2.82
*before special charges --including recent merger.
Next years estimates range from $3.00 to $3.50
EVEN WITH A $3.00 EST. AND A SHARE PRICE OF $15.00- OUR EST.PE IS ONLY 5x 00
In our opinion this is gift from the moron brokerage firms that down graded UNM last week
because it missed "first call" numbers by .12.. The stock dropped $12.00--3 or 4 firms changed
the rating on UNM! We find it so amazing that the majors are such poor investors. We always
BUY what they SELL and SELL what they BUY! We currently own 1500 shares. If it pops next
week we may trade some and if it continues to drop we may add some!
We believe that within 1 year than we will have at least a 100% gain!
2. THE BANKS HAVE BEEN SLAUGHTERED ! THIS IS OUR TIME! MOST BANK STOCKS
ARE DOWN 50-60%--WE SEE NO BROKERAGE FIRMS RE-RECOMMENDING THEM! SO
TYPICAL!
WASHINGTON MUTUAL----WM
HIGH QUALITY BANK--PRIMARILY MORTGAGE BANKING
current price $22.81
52-week range---$21.625-$45.00
book value--$15.50
cash--$4.29
557 million shares outstanding
dividend--$1.08
REV FOR 99-$8 BILLION AND NET INCOM/SH--$3.16
DEC 00------EST. $3.63
DEC 01-----EST. $4.20
WM is currently trading at around 7x 99 numbers and 6.5x 00!!!!!
With these numbers WM deserves to trade @ in the 40's not the 20's
We are long term on this high quality bank--while we wait we get a juicy dividend!
We currently hold 1500 shares out WM
3.BELL INDUSTRIES------BI------current price---$3.56
BI WILL BE DELISTED FROM THE NYSE ON MARCH 10,00--DOES NOT MEET REQUIREMENTS ANY LONGER--
WILL HEAD OVER TO THE BB FOR AWHILE MOST LIKELY.
THIS IS A GREAT VALUE STOCK AND WILL APPRECIATE FROM CURRENT LEVELS WITHIN
12 MONTHS! ( THIS IS OUR OPINION)
PROVIDER OF COMPUTER SYSTEM INTERGRATION
book value--$4.24
cash--$1.16
debt--0
52-week range $3.25- $11.50
9.61 million shares fully diluted
FOR 99 REV $240 MILLION AND .57 NET/////FOR 98 REV $212 MILLION AND ($1.40)
GREAT TURN-AROUND--TRADING @ 6X TRAILING 12!
ON FEB 9,00 MANAGEMENT ANNOUNCED 1 MILLION SHARE BUY-BACK
In our opinion BI is a great BUY @ current levels!! A extremely undervalued situation
based upon fundamentals...We currently own 7500 shares at current levels.
THE MICRO-CAPS
NEW RECOMMENDATION:
COMPARE GENERICKS---COGE----price .45
The company distributes, markets and sells dietary supplements and OTC non-prescription
pharmaceuticals.
WEBSITE--UNDER CONSTRUCTION----MAY BECOME A SELLING DEVICE FOR DRUGS!
fully reporting with SEC
book value --.90
debt=0
4.9 million shares fully diluted and 5.9 million preferred($76K dividend during 99)
9 months 3 months
00 99 00 99
$29.5 million $22.6 million $10 million $8 million
.03 (.04) .01 (.07)
We have great growth,profits,no debt,25% discount to bk,website coming soon and relatively
underfollowed and unknown!
At present we own 35k of coge at current levels--We may buy,sell or hold! We intend to
monitor COGE for % gain performance!
***********************INTERNET ATTACKED BY HACKERS******************************
HOT MONEY IS ALWAY LOOKING FOR THE PLAY!!! CHECK OUT DSFT!!!!
WITHIN THE PRESS RELEASE DATE FRIDAY--" INTERNET SECURITY PROGRAMS ARE
STATE-OF-THE-ART"
COMPANY---SOFTWARE SOLUTIONS
fully reporting
52-week range---.125--$1.56
On 1/11/00 filed S-8 --looking to raise some $$ via exercising of options that are now
registered --1.1 million shares for compensation @.16, 250K @ $2.00, 2 million @ $2.00,
4,650,000 @.24
At present--last filing--11 million shares outstanding--We should see the next 10Q within
days--Rev for 1st quarter $1.7 million and .01..book value is around .15
Again, the press release from Feb 11,00 in our opinion is very bullish and ofcourse could not
be more timely!!!! When one considers other Internet Security stocks---this appears to us
to be a steal at current levels.. We anticipate that interest concerning DSFT will grow as
the herd hears about this mini-micro---Near term this stock could appreciate rapidly-
if Internet security continues to make the headlines. We currently own 10K at current levels
and may trade it if the stock rockets too fast! For the speculator that loves action and risk-
this looks like your e-ticket for thrills and spills!
OTHER STUFF:
OSCR IS NOW OSCRE--WE ARE PLACING A 65% SELL ON OSCRE AT PRESENT BECAUSE
WE BELIEVE THAT ONCE ON THE "PINKS"--THAT IS WHERE IT IS HEADED- WE WILL
BUY IT BACK AT CHEAPER PRICES. IN OUR OPINION, THE PRESS RELEASE THAT
GOT US INTERESTED MAY BE BITING THE MANAGEMENT IN THE ASS! WE DON'T THINK
THAT MANAGEMENT MISLED INVESTORS WITH THE RELEASE, BUT INSTEAD HAD POOR KNOWLEDGE OF U.S. ACCOUNTING.
EVEN NOW I STILL DON'T REALLY KNOW WHAT WE REALLY HAVE! THIS IS WHY NON-REPORTING COMPANIES ARE VERY
RISKY! ---WIN SOME LOSE SOME!
ON OCT 09,99 WITHIN OUR E-MAIL WE CALLED CLOPF A "SPECULATIVE BUY" @.16
AT PRESENT CLOPF IS $1.24--A 675% GAIN! IT LOOKS LIKE IT WANTS TO MOVE HIGHER!
WE HAVE SOLD 25% FOR PROFIT MOTIVE ONLY!!! IT REALLY HAS GREAT POTENTIAL, BUT WE INVEST FOR PROFITS
AND TRY NOT TO GET GREEDY!
HAPPY INVESTING
WILLIAM VELMER---OUT HARDCOPY NEWSLETTER IS 17 YEARS OLD THIS WEEK!