S.A. Advisory E-Mail Update

What to do with $400,000,000.00 in a cash strapped market?
A $ 9000.00 investment could result in a $150,000.00 return within 12 monthsThis blind pool investment vehicle has all the ingredients to deliver huge returns with unbelievable leverage! NRDC Acquisitions ( naq-wt or naq.ws or naq/ws We are only interested in the warrants and are only buying them for this unique play that can make you wealthy!

November 10, 2008

NRDC Acquisitions is basically a Blind Pool with around $ 400 million. It intends to acquire one or more operating businesses through a merger, capital stock exchange, stock purchase, asset acquisition or other similar business combo.

The common stock currently trades at around $9.00/sh (naq) , while the warrants (naq/ws, naq.ws or naq-wt-- dependent upon the online quote service that the investor depends upon - trade at around .18/wt) .

The warrants are exercisable at $7.50 from Oct 24, 2008 to Oct 24, 2011 if a deal is completed during the next 12 months or so! If a deal is announced and completed and the common trades @ $14.25 for 20 days out of 30 then the warrants are callable by the company!

If no deal is announced before Oct 24, 2009 the warrants are worthless. Of course if a deal is announced close to the deadline the dates can & will be altered in order to close a business combo!

This deal was completed during Oct 2007- the IPO raised around $ 400,000,000.00. Each Unit sold for $10.00/unit received 1 common share and 1 warrant. The unique structure of this Blind Pool protects the investor and motivates the principles of the company to find a deal so as everyone can win!

The brokerage firm does not get the $15 million in commissions unless a deal is completed and the insiders do not get their 10 million shares either unless a deal is completed. if a deal is not completed or announced by Oct 24, 2009 all monies will be returned to investor types. The warrant holders get nothing!! Management also bought 8 million warrants at $1.00/warrant at the time of the offering- if no deal is completed they get nothing back, but if a deal is announced and completed their 8 million warrants can be converted at zero cost. If a deal is announced and consummated there is an additional 2 million co-investor common and warrants that will raise an additional $20 million for the deal ( the 2 million warrants are a cashless conversion after 1 year after conclusion of successful merger.

The deal must use at least 80% of the monies-- this could be multiple deals that total the 80% or 1 deal. Upon voting for the deal if shareholders vote 1 vote less than 70% then 30% of IPO investors can have their money back- that does not mean that a deal will not get done-- it means that the deal will be smaller--MAYBE!-- other financial arrangements may be used for any short falls that may exist-- A deal can be completed with only 51% of the voting shares.

The complete document that will explain everything can be viewed via the SEC --NAQ-stock symbol and review the 424B5 filing dated 10-18-2007

If should also be noted that from 2004 there have been 115 Blind Pools to the Oct 2007 date and another 45 filed- As of Oct 2007 30 had been completed, 24 in the process of being completed , 5 had returned the money-- the balance of pools numbering 56 controlled $5.7 billion-- We have not followed the end result of any of these IPO's. What this proves of course is that the market place likes these vehicles & a large percent of them have successful business combinations!

The unique advantage of naq/ws is the sheer size of the issue, that is, $ 400,000,000.00! With the current credit storm that blankets the world at present the amount of cash that this pool currently controls and the huge amount of bargains that exist because of the crisis makes our situation extremely valuable in our opinion!

Many quality situation are popping up all over the world that need cash and will sell divisions, assets or subs are fire-sale prices and has created an environment for naq/ws to makes us a huge return with limit risk within a limit time period!!

Here is the leverage as we see it!

The common NAQ currently trades at $ 9.00 while the warrants trade at $ .18 (naq/ws, naq.ws, naq-wt). Please keep in mind that the warrants are not worth anything unless a deal is completed. Once a deal is completed the warrants exercise price is $7.50-- at present the common trades at $9.00 - let us say that the street likes the deal even in this horrible market and the stock moves up to $10.00 - this will result in a warrant that is now in the money by $2.50 - we also must assume that because there is a number of years left to the warrants that the time factor should be worth around .50 to $1.00 additional valuation placed upon the price of our warrants --If a deal is announced and the stock is at $10.00 the warrant must trade at $3.00-$3.50/wt a far cry from the current .18 level! This action must happen during the next 11 months-- we know when the game ends and we also have an idea of what it could easily be worth upon the announcement of a deal that closes. Also keep in mind that even an initial announcement of a "letter of Intent' will cause in our opinion the warrants to most likely double on the anticipation of a completed deal! The 52 week range for our "happy' warrants .05-$1.00.

Here is the big picture; Management wants a deal so they get the stock held in escrow, the Brokerage firm wants their $15 million so they want a deal, the market place is ripe with money hungry deals- bottom-line if management cannot get a deal for this Blind Pool they should and will bury their heads in the sand in disgrace!!!!!

PS: Around 52 million warrants outstanding-does not include co-investment warrants.

Here is the investment scenario that lights up our brain cells!

If you invest $9000.00 in the common NAQ you get 1000 shares- if the common goes to $10.00 because a deal is announced and completed you make $1000.00 or 11%!

If you buy $ 9000.00 worth of warrants at the current price of .18 you get 50,000 warrants. If a deal is announced and the stock goes to $ 10.00 your warrant must be worth at least $3.00/wt- this results in gross proceeds of $150,000.00 minus the $ 9000.00 we invested leaves us a juicy profit of $ 141,000.00 for a $ 9000.00 investment!!!!!!!! We also believe that when a letter of intent is announced the warrants will spike to .50 just based upon the potential execution of a deal!!

The downside is that management is clueless and all monies are returned in 1 year and most of your investment evaporates!!

We love this situation and believe that the return potential is worth all of the risk !




MVCO- Meadow Valley Corp $7.55 The Libs will love this coming from us! This is the perfect Obama Play! He intends to stimulate the economy with re-building of roads, highways, bridges and overpasses and other public works- We of course agree and have found a great pure play that currently has a buyout offer on its head and a lawsuit against the buyout because it is thought to be to low!

The company on its own is a 'cherry"! It is currently trading at or near book, has cash/sh of $7.39 at the end of the second quarter and earned .45 vs .26 for the 6 ending June 30th 2008. Revenues grew by 17% from $101 million to $117 million. The backlog at the end of the 2nd Q was around $150 million - recently announced another $35 million contracts. The company also announced a payment of claim for $1.7 million that will increase the company's cash hoard!

We basically win 3 ways! With the common stock trading at around $7.55 and the buyout of $11.25 due to close before year-end-- we just sit around and wait for the check!

Penn Avenue Funds has a lawsuit that the offer for company is too low and causes an increase in the buyout price- again we sit back and count the greenbacks!

The deal falls by the wayside and MVCO appreciates to higher highs because it has the right business model in place to take advantage of Obama's stimulus program to better the infrastructure and create jobs for the illegals!

Overall we see little to no risk even in this storm of falling knives. We either get $11.25 very soon or more or wait for appreciation on its own!

This may be the best path to the 'yellow brick' road that investors could hope for with almost zero risk!
phone 602 437 5400

We rate MVCO with a strong buy rating for short term play!

our last email alert dated Oct 26th 2008

stock symbol 10/26/08 11/10/08 rating

aa 9.41 11.19 s buy

tso 8.98 9.69 s buy

gti 6.21 6.34 s buy

stld 9.59 9.52 s buy

gbx 8.35 8.31 s buy

mtw 8.94 9.03 s buy

hio 3.73 4.03 s buy

hero 5.56 6.32 s buy

auy 4.03 4.73 s buy

s-buy= strong buy

AES- $8.48

We also like AES- power generator -At current levels- heavy insider buying and consolidation within industry makes it a target for takeover- very cheap ! Earnings est. for 09 of $1.18


Another refinery that is benefiting from shortage of asphalt - heavy insider buying before the financial meltdown. Has seen surge in asphalt prices 80% from a year ago! Earning est.. for 09 $1.03

We have not been paid by any of the mentioned or listed investments within this email alert! We may buy, sell and or hold at our own discretion..

We hold positions in all listed investments.

Hard-copy newsletter 1 year $100.00/year

Super-fast phone service $1000.00/yr we contact you before the herd is informed or $2500.00/yr for personal communications whenever- for more information call 801 272 4761

mailing address:
4700 s holladay blvd
slc,utah 84117
William Velmer
Job Title
phone: 9499229986

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