S.A. Advisory E-Mail Update
December 28, 1998
Subject: Stock pick of the year for 1999--www.saadvisory.com
Dear Emailer's: http://www.saadvisory.com
Within this email we will feature our Stock Pick of the YEAR for 1999. This
choice will also appear within Dick Davis Digest during mid January 99!
FINANCIAL PERFORMANCE CORP. (FPCX)
The company's principal business is merger communications and marketing
services to financial institutions. MKP's primary business is bank merger
communications, which accounts for approximately 100% of revenues. The
principals of MKP have managed over 50 merger communications and other
projects for banks, including Bank of Boston/Bay Bank, The Bank of New York,
Citibank, First Union National Bank, first National Bank of Maryland, Nat
New
Bank, Fleet Bank, The Dime Savings Bank of New York, Great Western, First
fidelity, CIT Group, PNC and Chemical Bank.
Select Financial Data Year ending Dec
96A 97A 98E 99E
revenue 8.7 million 7.8 million 23 million 40 million
net income/sh .003 (.07) .32 .64
shares outstanding 4.9 7.9 9.4 9.4 million
9-months ending Sept 30,98 3-months ending Sept 30,98
98 97 98 97
revenue $16,274,000 $6,412,000 $7,000,000 $1,900,000
net income/sh .238 (.07) .087 (.06)
shares 8,799,000 7,992,000 9,400,000 8,015,000
Book value as Sept 30th 98 --- $4,135,922 or around .41/sh
CASH as of Sept 30th 98 --- $3,456,266 or around .35/sh
Long term debt --- 0
NOL --- over $1 million as of Sept 30th, 98
Working Capital --- $3,700,000 as Sept 30th, 98
FPCX --- FULLY REPORTING WITH SEC
Robert Trump owns 4.9 million shares( brother of Donald Trump)
Public float is around 1.8 million
Remaining shares held by management and close ties.
AS OF NOVEMBER 9,98--9.4 MILLION SHARES OUTSTANDING--FULLY DILUTED
If the Harvard Business School needed a "perfect company" regardless of size
to review for investment quality--It is our opinion FPCX would be hard to
beat!
The company has no debt, has a huge cash horde, revenues are exploding (for
the 3 months ending Sept 98 revenue soared 268%-- for the 9-months revenue
rose by 153%),earnings are rocketing ( for the nine months ending sept98-
income/sh reached .238 versus a loss of .07)has a huge NOL, which will help
shield taxes, strong management team, great cash flow and working capital,
leader within unique niche and best of all --FPCX is extremely cheap based
upon STRONG FUNDAMENTALS!!
Based upon recent management conversation concerning the future revenue and
earnings growth---Management has no problem with the numbers for the year
ending December 31, 98, that is, $23,000,000.00 and income/sh of .32! As Mr.
Finley ( president) stated within our Sept/Oct newsletter " the revenue and
earnings trendline is anticipated to be a mirror image of the first six
months
on 98 continuing through 99". IT SURE LOOKS LIKE MANAGEMENT IS RIGHT ON
TARGET!
Based upon 98 est. for rev and earnings our current share price of $1.06
indicates a severely undervalued and underfollowed investment opp. As present
FPCX is currently trading at a PE of 3.3X, 2.2 book, .43 PSR and 3X cash!!
If one considers that FPCX is growing by triple digits and earnings are just
as mindblowing---that higher fundamental variables surely be assigned!!
Even if we assign a conservative PE of 15X ( COMPANY IS ANTICIPATING TO GROW
BY 80% NEXT YEAR AND EARNING ARE ANTICIPATED TO DOUBLE) and based upon
our earnings for 98 our share price would equal $4.80--a 352% gain over
current levels.. Next year numbers are even more attractive---earnings for
99--according to management should reach .64/sh--with the same PE valuation
of 15X--our share price zooms to $9.60/sh!!!!
If FPCX was to trade at 1X sales--which of course is extremely low then our
share price based upon 98 numbers equals $2.50 and for 99 equals $4.00!!
Concerning NASDAQ-- The company hopes to get list within a reasonable time
period. Management is considering a secondary at the $4.00 level. The
company is also acquisition oriented.
In our opinion, based upon what we have and what is anticipated FPCX is worth
at least $3-$5 near term and $6-$9 within 12 months if revenue and earning
projections are met!!
In our opinion FPCX will get noticed sooner than later and will appreciate
dramatically from current severely undervalued levels. It should be
considered as a core holdings within any portfolio of undervalued micro-mini
caps..
For more information call the company--Mr Finley--1-212-557-0401
For a qualified broker-----------------Mike Chesler--1-800-331-1355
This investment opp. has been rated a Strong Buy! We first recommended FPCX
on or about August 20,98 @ .81/sh. We have not received any form of
compensation for our opinioned recommendation. We currently hold a position
in FPCX and may buy, sell or hold according to our investment objectives! We
are currently monitoring a position in a specified portfolio for % gain
performance.
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