S.A. Advisory E-Mail Update
May 20, 2002
New Buy Recommendations for May 20th 02 from S A Advisory Dear E-mailer"s http://www.saadvisory.com If you do not want our material any longer visit http://www.saadvisory.com/update and follow directions in order to delete yourself. We can't remove your address. We have not been paid by any of the listed investments within this alert. New Buy Recommendations: Worldcom Group WCOM price $1.35 52-week range $1.12-$19.00 Provides a broad range of enhanced Data and voice communications and managed network services. The company's operations reflect the performance of the data, Internet, international and commercial voice business of Worldcom, Inc. First quarter of 02 ending March 31st rev equalled $5.02 billion with net income/sh of .09. Estimates for 02 year-ending Dec --.39 Many think wcom is a chapter 11 candidate because of slowing business,huge debt load, trick or treat accounting and directionless concerning any remedy for survival! WE OF COURSE BELIEVE THE TOTAL OPPOSITE OF THE WALL STREET HERD COWARDLY CROWD. It is amazing how in just 2 years when rev and earnings meant nothing to the investors of Wall Street to present day when accounting reliability for corporate america has been questioned to extremes. We are very inpressed with an analyst that covers wcom and suggest that everyone listens to the narritive on ON24 for Tuesday May 14,02 time 3.36 pm. You will be convinced that wcom is a winner!!!! We believe that the downside is tiny when compared to the near-term upside in wcom shares. We believe that a 300% upside potential exist within 6 months. WCOM- has cash-flow, earnings( somewhat depressed), 44% of the internet backbone, assets that can be sold, debt that can be refinanced ( note: according to FT wcom on May 19 rivised $1.5 billion financing), additional $5 billion debt to be re financed during June 02, the herd pundits are totally wrong about the survival, could be a takeover candidate ( such as telmex--great fit) and fundamental est. for pe, psr and cf/s are laughable @ current levels. In our opinion WCOM is the best speculation around in this nutty market of over-done negative opinion. Broker contact Greg Nelson 8014563561 ************************************************************************************************* OTHER BUY RECOMMENDATION BRIEFS SYMBOL SHARES OUT BOOK/CASH DEBT 52- WEEK RANGE HISTORIAL HIGH STATUS NUAN 33 MILLION $4.66/$4.48 0 $4.71-$21.00 march 00-$180. BUY A leader in speech recognition. Rev for 01 $39.2 million with losses. For the first quarter of 02 rev was $9 million with .26 loss. NUAN has $162 million in cash--cash/burn rate is tiny and can easily survive this current downturn in corporate spending. This will change and we believe that by early 03 NUAN should start to benefit. We also believe that NUAN is a takeover candidate that could easily be raided for the cheap!! Lose for 02 & 03 .95 and .60 respectively. This amount is small when you consider that most of the lose can be overcome by interest on the huge cash hoard. They loved it @ $180.00 when it was overprice by light-years and now you can buy for cash and nothing for the technology...CURRENTLY PRICED $5.35 WE WILL MONITOR NUAN FOR PERCENTAGE GAIN PERFORMANCE WITHIN OUR ACCOUNTING PARANOID PORTFOLIO. JDSU 1.5 BILLION $2.23/$1.03 0 $3.39-$24.21 march00-$140. BUY A high tech cmpy designs, develops manufactures and distributes fiber optic components, modules and subsystems for the fiber optic communications industry. Rev's dropping and losses have also continued---estimates for 02 of (.11) and for 03 (.06) . When you consider that you can buy this leader for around $4.50/sh and during March of 00 it would have cost you 35X the current price ---you have to take a serious look @ this down and out tech stock that has ZERO FANS!! We believe that JDSU will be a surviver and it is just time before this situation turns. We believe that it is oversold @ current levels. We would buy a half position in JDSU and if it drops more we will re-evaluate. The risk/reward scenario look very favorable in our opinion.....CURRENTLY PRICED $4.50 WE WILL MONITOR JDSU FOR PERCENTAGE GAIN PERFORMANCE WITHIN OUR ACCOUNTING PARANOID PORTFOLIO. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ MICRO-CAP BUY RECOMMENDATION---FIVE STAR PRODUCTS FSPX- OTC BB- .20 FULLY REPORTING WITH SEC 12 MILLION SHARES OUTSTANDING THE COMPANY IS ENGAGED IN THE WHOLESALE DISTRIBUTION OF HOME DECORATING, HARDWARE AND FINISHING PRODUCTS. IT SERVES OVER 3500 INDEPENDENT RETAIL DEALERS IN 12 STATES MAKING 5-STAR ONE OF THE LARGEST DISTRIBUTORS OF IT'S KIND IN THE NORTHEAST. THE COMPANY OFFERS PRODUCTS FROM LEADING MANUFACTURES SUCH AS, CABOT STAIN, DAP, GE,STANLEY TOOLS, USG, MINWAX AND 3M. Year end Dec 31st 2000 2001 first quarter 02 (march 31st) rev $ 93.8 million 94.9 million 25.4 million net income/sh .06 .03 .02 book value--$2.6 million This stock has a market-cap of $2.4 million and had rev of $100 million!! Could easily be a takeover candidate @ current penny stock levels! Goldman Sach owns 600k shares of this situation.It appears that rev for 02 will reach $100+ million and earning could equal 08./share--If this economy continues to rebound this stock could really run! NOT MUCH DOWNSIDE RISK IN THIS .20 BARGAIN. BROKER CONTACT MIKE CHESLER 18002262227 Market looks like it may want to rally --We remain fully invested and margined! This market feels tired of going down! Yours truly William Velmer PS Score One srea---great earnings report
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