S.A. Advisory E-Mail Update

July 23 , 1998

Dear E-mailer's: http://www.saadvisory.com

We hope that you are all having a great summer and please don't get greedy!

1. We have just released a "new" corporate profile on Wordcraft Systems,Inc. The nasdaq-bb symbol is worc. Please review --It may fit in your mini- microcap diverse portfolio. The numbers look very compelling for investors looking 12-18 months into the future. The MFS and Utility industry are growing rapidly and looks extremely favorable for companies that participate in these industrial groups..

2. Payless Cashway, Inc. nasdaq-bb--pcsh. A retailer of building material and home improvement products in the U.S. and Europe. We initially recommended PCSH at $2 a number of months ago when the company emerged from chapter 11- the stock proceeded to trade over $4.00--we then sold 50% ( phone service subscribers were notified). Recently the stock has been weak do to additional stock that was released by the court ( 850k shares). The current share price is $2.50--We think that is a screaming BUY! 20 million shares outstanding $8.00 book value Insider Buying on June 29th and 30th recent quarter indicates turn-around --Sales of $500 million and .04 net/sh At present 164 stores The company has huge credit line Payless Cashways should have sales of at least $2 billion this year and only has a market cap of $50 million. This is a winner!!!!!

3. Applied Magnetics--NYSE-APM This stock has KILLED everyone that has purchased it during the past 52-wks and beyond.. Currently apm is trading at $5.75. As mentioned in our last E-mail we believe that this opp should be purchased as a speculation. Earnings are due out July 23, 1998.. If the losses are less than anticipated this opp should fly!! The short position is Huge (11+ million)--only 24 million shares outstanding. At present bk is $7.08,cash $3.63, trading close to 52-wk low and everyone hates it and thinks that chapter heaven is close! We don't believe this and actually believe that the real risk is not owning APM at current levels! We rate it a BUY!

4. Bonzo Electronics--NASDAQ-bnsof. The company manufactures electronic products built in China and sells them in the US and Europe.. We initially recommended the warrants (bnswf) @ $1 a number of months ago and recently as of July 20th they were trading at $3.00--that was then this is now! A major blunder by management killed the common by $3 and the warrants by $2.50--They announced that the warrants are to be called and expire worthless by Sept 28th 1998--everything has imploded!!!!!!!!!! At present we believe that warrant holders that purchased @ $1 should convert ( the price of conversion is around $7.37). The latest earnings report that was just released a few days ago are outstanding, that is, $23.7 million vs $16 million last year and earnings of .73 fully diluted vs .16 ,book value is around $8. and the company has ZERO debt!!!!!( fully diluted 3.1 million shares outstanding)..We rate this situation with a Strong BUY recommendation at current levels!!! Cash level is around $2/share..The current price is $7.50. We intend to monitor this situation!

5. SCT & I---nasdaq-bb--scti.Management should have been relaxed concerning >the proposed reverse-split-The news has been great, but the stock has fallen back to original recommended price of .09/share.. We still believe that this situation is a BUY!! If you would like to see our complete research and BUY recommendation on SCTI--please see complete report within http://www.saadvisory.com


SETO---.80--strong Hold and actually a strong BUY
PCSN---$4.25--One would have too like this situation and actually should own some.
AMAT--$31.31--long term buy!
CYMI--$17.50 --We have mentioned this situation many times--reached $14 a few wks ago--Great situation long term
SEG--$24.50--Another leader --should be owned for the long term
RNE--A Russian Fund-close-ended--should own some at current price $18.25 Long term this is must!

Finally::ISOL--nasdaq . At the current levels of $2.25 looks very attractive--see recent news--we recommended this situation many years ago and have placed a new recommendation on this situation since the change in direction..Off the recent high of $4--name change and symbol coming soooon! The formal agreement by August 15,1998.

Mini-micro portfolio 1998

We intend to monitor this list of stocks for % gain performance! Give us 6-months--July 23,1998


PS..HP--This also belongs in all portfolio's-current price around $22.50- We intend to monitor this situation and Rate it with a strong BUY!

Helmerich & PayneHP$22.50

For new E-mailer's --we appreciate your interest in our service--inorder to keep this service "free"--we invite you to "click" the Investor's Business Daily banner and take the newspaper for 2-wks free--we make a few $$..--also check out the ZACK's banner ad as well!!

Our phone service investor's are informed first before anyone else!! For $1000/yr or $450/yr we call you first before any other service gets our recommendations--(e-mailer's second in-line). For more information call 1-801-272-4761 for additional info..Price increase for the phone service anticipated to increase in price Sept 1, 1998.

Yours Truly, William Velmer
Food for thought: Bulls and Bears make $$$$, while pig get slaughtered.

Copyright © 1998 S.A. Advisory