S.A. Advisory E-Mail Update

Febuary 18, 1997

Dear E-mail Subscribers: website; http://www.saadvisory.com

  1. SETO making news highs --earnings due out around March 15,1998. We had a conversation on Monday-Feb 16, 1998. Revenues will most likely come in at $22.million and earnings for the year ending Jan 31 98 will equal around .12/share fully diluted.

    Still early for true est. for first quarter, but revenues are anticipated to reach $8. million with net income/share of .04.. Each quarter is anticipated to ramp up revenues and earnings.

    We rate SETO with a strong Hold and Buy on pull back!

    ps..SETO was first recommended in our July/August newsletter @.07/share. Eventhough this is a totally different situation today-our overall percentage gain is a 814% gain.

  2. In the same newsletter we featured numerous other mini-micro's--most have done extremely well, namely vtpi from .10 to .82 ;plfm from.08 to .52; hir from $5. to $11.;iehc from .31 to .75..Dale Systems (dale) has been a non-performer,but still very cheap..

  3. The situation that has been a real sleeper and actually a real Dog has been Industrial Technologies (nasdaq bb-inti) We featured this situation at .18/share. At present the current share price is around .11. It may be GREAT BUY at current levels!!We will explain!

    Industrial Technologies, Inc. designs, assembles and markets automated surface inspection systems, electro-optical sensors and other laser-based equipment, and industrial computers and related products. The company's surface inspection division's customers include web process manufacturers of paper,plastics, film photosensitive materials, steel,aluminum,glass, non wovens and rubber products. The Company's industrial computer division offers a full line of industrial-strength processors, displays and peripherals to a variety of customers.. The Company sells its products throughout the U.S. and internationally, primarily in Europe and the Far East.

Why the stock has not appreciated since our July/August newsletter!

  1. 9-months ending June 30, 1997 was the last time the company filed a current financial document with the SEC. For the period ending June 30th--sales reached $5.7 million with a small loss of .02/share.

    >From that last report there has been no news from the company!!

Here is the current activity!!

  1. Late 10K and first quarter of fiscal 1998 (10Q) will be released within two weeks.
  2. We believe that fiscal 1997 will show a large loss due to the fact that the company moved to a new facility that cost half the cost of the former.
  3. New management has come onboard, with the departure of 2 officers.
  4. Currently there are 43 fully time employees plus reps.
  5. New products are being introduced.
  6. Eventhough the stated book value was .54 at last filing --we still anticipate that equity remains and we think that it is still .40/share.
  7. In a conversation with Ms. Gold "business is very good". She sounded extremely upbeat and very positive about the future.
  8. She also explained that the company was actively looking for many more employees.
  9. At present this opportunity has many unknowns due late filings--This is being corrected! At present the total market-cap is only $570K,the company has equity, has new products and new management and limited long term debt-- as of June 30th.
  10. The company's stock is currently trading at its historic lows..In our opinion inti has to be worth more than .10.
  11. We assume that sale are atleast $7 million for 1997--this gives us a PSR of .08--This a extremely cheap valuation!
  12. At present there are only 5.7 million shares outstanding.
  13. Technology company. Finally:We have new products,cheap fundamentals,new management,very low share valuation, growing employeement, extremely unknown and has no following and best of all can be had for .10/share or there abouts..With all the above facts we believe that inti should trade for atleast .25 to .31/share.
MORE STUFF! CYMI--BUY We are looking at (netz)--Does not look kosher!

We are starting to look at oil related issues--could be another down leg!

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