S.A. Advisory E-Mail Update
March 19, 1998
Dear E-mail Subscribers: http://www.saadvisory.com
Our latest newsletter and Corporate Profile are being mailed March 19th or 20th 1998..As mentioned in an earlier e-mail that the newsletter recommendations consisted of cymi and epln.
Our "new" Corporate profile: SC & T International,Inc. Current price .09 This opportunity has an interesting story; We were hired to produce a report on scti for pay! They did not anticipate that after conpleting our research on this situation that we would decide to recommend it to our phone service subscribers and now our e-mail subscribers!! We intend to monitor this opp in our 1997 Summer Portfolio #1 & #2 for percentage gain performance..
Upon review of our brief summary on scti (nasdaq-bb--scti) you will see why this is SCREAMING BUY!
Corporate Business Description: The company develops and markets accessory and peripheral products for the personal computer and video game segments of the retail and corporate markets under the company's Platinum Sound and PER4MER registered trademark.
The company's sound products (20%) include subwoofer, sound enhancement systems, and a broad line up of headphones, micophones, and amplified speaker systems.The PER4MER(80%) line consists of racing wheel products designed for all IBM PC's SEGA, Nintendo and Sony Playstations game consoles.
See detailed Corporate Profile via either the mail or on-line via http://www.saadvisory.com within a few days-- we will notify subscribers when available on our site!
****** OVERVIEW*****NEW BUY RECOMMENDATION***********
- New management, new products and new vision!
- No long term Debt
- Revenue and earnings est. for next two years could reap investors huge windfall.. Management estimates that revenue for fiscal 99 starting April 1, 1998 will equal $14.5 million and net income/share( based upon fully diluted 23 million shares outstanding) of .09.. For fiscal 00 management est. $22.45 million and net income/share of .195. These are management's numbers!
- Large NOL ( $10 million) will not be paying taxes for a number of years.
- Cost cutting measures are anticipated to save between $500K and $750/yr.
- Trading below stated book value as of recent 10Q --around .13 book -- actually around 40% below.
- Investors have been slaughtered for the past two years, most want nothing to do with it! a great contrarian pick! Trading at $9 two years ago!!
- Conducts business worldwide.
- Fiscal 99 will be the first year since the company's inception that it will be going into the Christmas 1998 selling season with a full assortment of current products.
- New products under the catergory PER4MER Racing Wheels will represent 80% of the company's revenue during fiscal 99.
- New products being introduced according to management will generate higher gross margins which will allow SC & T International to achieve estimated revenue and earnings for fiscal 99 and 00.
- Fully reporting and currently 10Q on file with SEC.
When you consider that the stock is currently trading at only .09/share and the company has such potential--How can you not want to own some! THE REAL RISK may actually be not owning it! Even if scti only earns half of the estimated earnings, that is .045 --how can this stock stay at .09?
In reality- If scti can earn .09/share for fiscal 99 the it is more likely to trade a $1.00.... That is why the risk may be not owning it and this is why we decided to put a BUY RECOMMENDATION ON IT!
Note: most recent 10Q just released and as anticipated by management the second quarter showed a loss. The third and final quarter of fiscal 98 is almost over and will only be a 9-month business year. Management only anticipates that for the year ending March 31,1998 sales will only be around $4.5 million and net loss/share will equal .11-- Please keep this inmind-- We do not BUY stocks based upon history,but BUY stock based upon the FUTURE! This will be a new company and in our opinion is worth the RISK!
One more point: If everything was great this stock could be a few dollars, but everything is not great and the company needs to prove itself! If it does investors that have the "balls" now will be vacationing later!
Broker Contact: Mike Chesler 1-800-331-1355
***************OTHER STUFF*****************************
- Global Spill (gegi--nasdaq -bb) We first recommended gegi on August 20,97 @ .375-- During the past few day this opp has went nuclear!!!! It closed on March 18, 1998 @ $2.125 or a 466% gain in 7-months..News keeps pouring out from the company!!It is acting like a volcano with lots of steam! See recent press!
- Semicon Tools,INc.(seto-nasdaq-bb) GEGI may very well catch up to our seto performance, that is, we first recommended seto on July 9,97 at .07 it now stands at .67 or 857% since July 9, 1997. Earnings anticipated soon- management says .11 to .12 on sales of $22 million. This could continue to soar!!
- See last e-mail for current low-priced stock placed in a portfolio since July 9,1997--It will blow your mind on the actually performance!
- pcsh--From same "stock pick of the year newsletter" Jan 1998. IT blasted off recently from $2.125 to current $4.00-off recent high of $5.00 . We are watching this carefully --earnings for the first quarter may not be great- when one considers the warning that the company released during Jan 1998. May be ahead of itself! We think that selling half at current levels is the winning plan!!We will remove our investment and probably be able to get back in at lower prices.----Sell half!
- Epolin continues to power along!!See complete report on the opp. in "fresh" newsletter being released within days!
- We are getting close to recommending Speedfam-a semiconductor play. We are watching carefully sfam--nasdaq
- Stay tuned--We a few new ideas that we are getting ready to introduce that are currently trading below .50..
- It is remarkable how so many investors hate mini-micro's caps---The key is to buy smart and buy value and buy calculated risk!!
Yours Truly William Velmer http://www.saadvisory.com
For the quickest market action on our recommendations --spend
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