S.A. Advisory E-Mail Update
February 9th, 2003
S.A.Advisory update and recommendations for Feb 9, 03 & Special Oil & Gas project recommendation Dear Emailer's www.saadvisory.com If you don't want our material any longer please visit www.saadvisory.com/update and follow directions in order to delete yourself. We have not been paid for any of the listed stocks that are mentioned within this message. We may buy, sell and /or hold all and any of these securities @ our own discretion. The market remains rough and very scary for investors @ this juncture in time. War looms on the horizon and economic growth is very cloudy. Wall Street is extremely out-of-favor and investing is a subject that is not openly discussed at cocktail parties any more! We assume that by early March 03 that a military exercise that has never been viewed on this planet since the beginning of time will be executed by the US against Iraq. We assume that the mostly one-sided battle will be short and successful. We may see some domestic & international terrorism against the US and allies-this will not destroy the democratic will for what is right and just. In our opinion the market will rally as the first bullets fly and the strength will depend upon current as well as future economic numbers. We remain optimistic that good will prevail over evil! ATTRACTIVE OIL AND GAS OPPORTUNITY The Oil/Gas Industry is a portfolio segment that should always be considered due to the endless geopolitical events and economic expansion potential. Both Oil and Gas are @ 2-year highs and the potential for further appreciation short and longer term has been and will remain attractive! It is our belief that direct participation in developmental oil/gas joint ventures can offer investors strong monthly income and very attractive tax advantage. Energy Equities has been in business for 10 years and has had a successful record for investors that want direct ownership in oil and gas projects within Texas. The Gas Project that we will be participating is located within Panola County, Texas--the 4th highest producing county in Texas. The Elysian Program consists of 4 gas wells that are developmental in nature. There have been over 100 wells drilled within this lease area and only 6 have been dry wells. Two wells recently drilled by the operator ( Graward) only 300 feet to south of the first proposed well (Furrh #1) had a payout in only 4 months. This project looks very promising and the payouts could be highly rewarding + the tax advantage! The first well is anticipated to begin drilling on or about Feb 20th 03. The other 3 wells will follow: Sparks #1, Harkrider #1 and Anderson #1. The total BCFG is anticipated @ 13.6- all wells have multiply zones ( except the Anderson). We personally have purchased 6 units in this 4 well project. Economic Summary based upon 10k investment: Gas @ $4.00 mcf-----currently gas around $5.80 mcf Initial flow rate Monthly Rev Payout 6k mcf/day 1% WI $1800 6 months 4k mcf/day 1% WI $1200 9 months Total Production Total Rev** Return Ratio 1% 13.6 BCF $116k 11/1 15.5 BCF $132k 13/1 ** Well gross x .75%=potential Gross Rev The potential rev excludes a Gas Severance tax of 7.5% More information about Energy Equities -please visit www.energyequities.com For more information concerning this gas project visit www.energyequities.com/elysian For additional information about participation in this Gas project call 1-800-794-3429--attention: Chancy B STOCKS WE WOULD LIKE TO MENTION! As you know we mentioned in our last email-mail alert that we had chosen Defense Industries (DFNS) as our "stock pick of the year" for the Dick Davis Digest! Every year we are invited to pick a stock that we believe will offer investors extraordinary upside potential during the next 12 months and beyond. We had mentioned that our selection would appear within the Jan 27, 03 edition, but we had the wrong date! We believe that the dated copy Feb 10th will have our exciting recommendation on DFNS! Many of you have contacted us and complained about the wrong information concerning the date- we have not recommended this "stock" for the quick score! During the next few months DFNS will receive a great amount of exposure because of our recommendation. Dick Davis is usually picked up by newspapers within the US and many brokerage firm monitor these special editions for "new" ideas. We believe that DFNS has great growth potential, sex appeal, and current as well as future management guidance with respect to rev and earnings ( review Jan 16th email alert ). Defense Industries International (DFNS) current price .70 The company is a leading manufacturer and global provider of personal military and civilian protective equipment and supplies. DFNS's main products include body armor, bomb disposal suits, bullet-resistant vests and jackets and "Internationally patented" BALLISTIC WALL COVERING, which is a blast resistant armored wall fabric designed to prevent injury from explosion. As mentioned earlier, visit www.saadvisory.com and review the Jan 16th email alert for the complete recommendation on DFNS. During the past 2 weeks DFNS has announced additional contracts resulting in the mention of another $4 million worth of product sales as well as delivery dates. We are told that additional releases are planned for the week of Feb 10-17, 03. WE RATE DFNS WITH A STRONG SPECULATIVE BUY RECOMMENDATION! **************************************************** DHB INDUSTRIES ( DHB--AMEX PRICE $1.90) If you like the defense segment that DFNS currently does business in--you must be aware of DHB Industries. The company produces bullet resistant and fragmentation vest and protective athletic apparel. For the 9 months DHB had revenues of $97.8 million and net income of $10.5 million. Rev and earning have had exceptional growth! The stock is currently trading near its 52-week low- down from $8.00.The problems that DHB have stems from "bad" press! A union is trying to destroy the company by creating false and misleading statements about the safety of the bullet-resistant products ( our military uses the DHB's vests for soldiers in combat and many police forces also use their products). Recently the UNITE union has filing an SEC complaint about the management of DHB. All this negative press whether true or false has planted a very dark cloud over DHB Industries and has depressed its share price dramatically. We are concerned about the problems and believe that over time things should get cleared up! Management may need to be changed. We believe that their product is excellent and have not heard of any severe injury or death relating to defected vests. We all know that Wall Street hates uncertainty--DHB has plenty! Within our Jan 1st 03 email alert we mentioned that DHB was a BUY @ $1.66 and still have a BUY rating on the stock even @ current levels. Est. for earnings for 02 of .31 and .40 for .03 makes the stock a compelling speculation, but risks exist. On the other hand DFNS is much smaller and in our opinion has great military product diversity and has no sec complaint, no product questionability, no management negative history and no union problems. We currently own both and believe that both are attractive with levels of risk! Other Stuff: For long term investors we still favor sunw, emc, intc, csco, amat, cc, hd, mcd, gr, aol,tyc, awe, q, txn, mot,nok, pvn, toy, nt, lu, nite,slr,flex, sanm, eln, vtss This group of diverse investments are some of America's industry leaders and for now they appear as "dogs"! We believe in Capitalism and believe in America! This list of stocks should be purchased by scaling into them. We cannot pick the bottom of this market, but remember that the Nasdaq is @ 1250 or so--if we drop 100 point/day the Nasdaq is ZERO in 2 weeks! Take sunw @ $3.00--@ .50 loss/day sunw will be zero in 6 days! This all means something! We have to be near a bottom. We are a value investor and believe that this market is extremely oversold! SUNW IS A GREAT BUY @ CURRENT LEVELS--NEW PRODUCTS TO BE RELEASED ON FEB 10TH. THEY LOVED SUNW @ $50 OR SO NOW HATE IT @ $3.00 WE WILL BE INTRODUCING A "NEW" MICRO-CAP ON OR ABOUT THE 20TH OF FEB. IT WILL GET INTRODUCED TO 2 MAJOR FINANCIAL PUBLICATIONS WITHIN THE US. THE COMPANY HAS EST. REV FOR 02 OF AROUND $100 MILLION AND NET INCOME OF AROUND .05/SH AND IS TRADING @ .10 .IF YOU WOULD LIKE TO KNOW SEND CHECK FOR $50.00 ( NOTIFIED BEFORE PLACED ON EMAIL) S.A.ADVISORY 521 BOLSA AVE NEWPORT BEACH CAL 92663 801-277-4761 FOR PHONE SERVICE -PERSONALIZED PHONE CALLS FOR BUY AND SELL RECOMMENDATIONS FOR 1 YEAR --$650.00 FOR INFORMATION CALL 1-801-272-4761
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