S.A. Advisory E-Mail Update

November 22nd, 2002

S.A.Advisory NEW BUY recommendation for November 22, 2002
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                                                       New Recommendation
 
 
                                                       PDG  Environmental, Inc.
                                                         (pdge.ob--OTC BB)
 
Fully reporting with the SEC.
 
Current price --.24
52 week range--.15- .75
Website-  http://www.pdge.com
Business started 1984 or so
Shares Outstanding--9.3 million as of Sept 31, 2002
 
PDG Environmental, Inc.  is a holding company, which, through its wholly owned operating subs, provides 
environmental and specialty contracting services, including asbestos and lead abatement, insulation, 
microbial remediation, demolition and related services.
 
Backlog @ end of July 31st quarter remains strong @ $28.5 million
Review Sept 13th 02 press release for complete management discussion concerning results and future statements.
 
Selected Financial Data                           July 31st quarter
 
                                                               2002                       2001
 
Rev                                                   $12.2 million            $10.7 million
 
 Income from
continuing operations                    $242,000                       ($219,000)
 
Income/sh                                           .02                                 (.03)
 
Extraordinary income/sh                  .02                                   ----
 
shares outstanding                           9.5 million                    9.2 million
 
 
For the six months ending July 31 st 2002
 
Rev                                                   $23,127 million              $16,541 million
 
Income/sh from operations                .02                                   (.14)
 
The extraordinary income from sale of operation in ST. Louis
 
Current line of credit  $4.15 million--un used amount $1.1 million
Book value- around .44
 
 
               Select financial data --year-end--January 31st
 
               1998                  1999           2000           2001           2002               2003E
 
Rev          $24.6 mil          $36.8 mil   $28.4 mil    $34.5 mil    $42.5 mil      $45+ mil
 
income/
sh               .05                    .14              .03               .02             (.17)               .07
from operations
 
After numerous conversations with management we are confident that PDGE
is an excellent short and long term investment for risk oriented investor types.
When you consider that the President of this company started  PDGE during
1984 with revenues of $400k and has grown PDGE into a $45 million rev based
company--you have to be impressed!
 
Our .07 earnings est. for fiscal 03 ending Jan 03 does not include the .02
extraordinary that was recorded during the second quarter of fiscal 03.
 
We actually believe that the rev and earnings will be higher--We feel management
is being conservative.  Within the latest press release management talks about
finally riding itself of money losing projects and that profits will now continue,
the company will continue to grow and in our opinion will lead to much higher
share prices.  
 
If we assume that PDGE will earn .07 for fiscal 03 and based upon the current
share price of .24- which results in a PE value of 3.4x- if  we use a conservative
PE valuation of 15x we get a share price of $1.05---a 337% appreciation potential
from current levels.
 
If we use Price to Sale (PSR)--A value of 1 is considered very cheap!  Based
upon rev est. for Fiscal 03 ending January  we calculate a PSR of .05--This
number indicates  a severely undervalued situation.  PDGE would trade @ $4.75 if
it was to sport a PSR of 1!!!!   We are not saying  that PDGE should trade
@ that level either, but it should be at least .75- $1.25 near term based upon the
numbers.
 
Concerning Book value--stated book is .44--share price is .24 .  PDGE could
easily trade @ two to three times book and not be overvalued. Again a share
price much higher than the currently  quoted value of .24!!!
 
 
We have a company that does business with many fortune 100 & 500 companies.
We have  an extremely cheap stock trading @ a heavy discount to peer companies.
We have estimates as well as reality that indicate PDGE @ .24 is a steal.
We have competent management.
We also have the potential of additional acquisitions and/or buyout by a competitor
that realizes that PDGE is a bargain! Market cap is around $2 million and sales
are approaching $45!!  Cheap way to buy revenue!
 
We rate PDGE with a strong Buy recommendation @ current levels!  We will
monitor PDGE for % gain performance within S.A.Advisory.
 
Broker Contact:  Michael Chesler:   1-8002272226

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