S.A. Advisory E-Mail Update

May 18 , 1998

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

Update and thoughts:

  1. Cable-link (nasdaq-bb---CBLK)current price: $3.18 We first recommended CBLK on March 1, 1996 @ $1.35/share ( takes into account the 20%,50% and 10% stock dividend). Core Business: Refurbishment, repair, and sale of prviously owned cable-tv equipment. Book value:around $1.00 stated first quarter: fully diluted: 2 million shares: No legal: Fully reporting: Important: On April 8, 1998 CBLK entered into a letter of intent to aquire substantially all of the outstanding capital stock of PC and Parts, Inc. The company is engaged in the business of providing computer hardware and services, as well as designing and implementing wide area and local area networks.

                           SELECT FINANCIAL DATA
                                                1st qrt
                   1996               1997A     1998Q(a)          1998E

revenue            8.2 million        10 million   2.7 million    18 million

income/share       .01                .45           .08            .62

shares outstanding
fully diluted      1.3 million        1.9 million    2 million     2million

We believe that the aquisition will be completed within days! The combined companies will employ 130 persons. The above numbers assume the completed aquisition.. It will not be dilutive and is being purchased for cash! We also believe that an attractive NOL will result from the transaction.

The actual PE for 1997 numbers is 7X!
The estimated PE for 1998 numbers is 5.1X!

The actual PSR for 1997 numbers is .6
The estimated PSR for 1998 numbers is .35

Anticipated growth rate: 98---80%

Overall opinion:

CBLK is under owned and under-followed! It is currently trading an almost risk-free multiple of 7X(A) and 5.1X(E).The PSR is also extremely favorable demonstrating a low risk investment. With revenue growth anticipated @ 80% and earnings growth of 38% ( note: aquisition only will account for 7-months--on an annualized value-rev would be atleast $25 million).

It is our opinion that CBLK should trade at a PE of 10X actual and 15X est., which would result in a share valuation of $4.50 and $9.30---A far-cry from current levels.. Management in our opinion has shown the ability to turn-the-company around yielding big earnings growth ( see 1997 compared to 1996). The managemnet has rewarded shareholders with many forward splits and comtinues to look for aquisitions for continued growth! The PSR also indicates an undervalued pricing of CBLK! At 1.X sales CBLK would trade at $5.33(A) or $9.14(E)..

This situation looks very cheap to us at current levels and we will comtinue to monitor this opp. in our portfolio's for percentage gain performance.

Concerning NASDAQ listing: Filing is anticipated: The share price is the only non-qualifying factor. Corporate #--18003991371 broker #-----Mike chesler--8003311355


  1. CAFE( nasdaq-bb) current price .18-.22
    range .06-----$7.18 recently 10 for 1 reverse as of march 31, 1998--8.6 million shares outstanding -according to 10K book value as of Dec 97--.22 new management--very small salaries cash----as of Dec 97--$1.2 million
    NOL------$35,000,000--------this is a BIG PRIZE--In our opinion makes this opp. worth much more than current price!
    It is quite evident that CAFE has been a SUPER DOG for years--but we did not pay $10, $20, $30 or even $40/share, but instead a few pennies!! An interesting speculation in our opinion for "players"! Could be used as a SHELL! We are not sure if the current business is viable, that is, the Country Star restaurants ( currently 2 in operation).
    The company is actively looking for acquisitions and looking for a PR firm!
********************* MUCH BETER THANT LAS VEGAS********************
phone: 213-634-5588
broker: 8003311355--Mike Chesler

Risky---Take a HARD loooooooook!

Amqt------Ameriquest is primarily a national valued added wholesale distributor of micro, mini and mid range computer and related products to value added resellers and systems integrators.

  1. reduced size of company dramatically
  2. reduced debt by $30,000,000.00
  3. March 31,98---cash of $3 million
  4. credit-line in place
  5. range 52-wk---.06--.31
  6. 69 million shares outstanding--most held
  7. Has an internet site; sells over the NET---Could become the money machine.
  8. Revenue for the first quarter was $13.6 million with a small profit!
  9. Another HATED DOG that traded at much high prices (NYSE listed).--The little stocks are emerging from a deep sleep--this one is a great shot in our opinion!!! FOR PLAYERS THAT LIKE TO PLAY!**********************************

    This little unknown opp. looks like it going to pop ---PR program looking to get the price up so as an equity sale can be put in place!! Only 13 million shares outstanding with only 1 million shares in the float!! The name is Wordcraft systems WORC-nasdaq-bb. They produce a multi- functional software program for information transfer. We believe a "play is at hand!"


    SEG on May 17,1998 announced that the disk drive recession is almost over and a Bottom has been reached!! This should boost our APM share tommorrow in NYSE trading--We have been adding shares recently to our own portfolio at $7.375/share...This has been a DEADLY DOG For us!!! We first recommended APM at $22.69.

    We still favor CS, CYMI, --Our WDC should move tommorrow as well-- We recommmended WDC @ $15.75 during mid Dec 97.

    We are watching ipec and sfam---(pair) starting to look cheap!

    We are also watching almi for a re-entry point below $2.25.
    We are also watching gegi for a re-entry point below $2.50.

    SETO looks great at present levels--trading at only 8X trailing.

    SCTI looks attractive still as a speculation!

    PCSH waiting for June 98 when more stock is released by courts--should create BUYING opp!


    TGSK---We placed a sell on 50% of our position because it flew skyward 190% within 45 days of our recommendation! We would be a fool not to take profits !! We still like the opp. and the number are compelling, but TGSK is only a distributor and in our opinion does not deserve a higher multiply than 10X--It is not listed on any major exchange, to date does not file with the SEC and I still donot like how it trades!! With only a few million shares in the float (2.2 million) I cannot understand how this stock trades millions/day!! I donot agree with the "short" scenario--If you have a level 3 NASDAQ machine it is obvious that this is not the case!! We believe that since earnings have just been released by TGSK recently-- (excellent number) and with all the news out- the "shark may trend lower ---with the volume that appears available we could see $1.25-$1.50 until the next earnings report is released (90 days).

    We intend to recommend "new" opps. very soon so look for E-mail!!!

    If you would like to receive recommendations before our E-mailer's--YOU need the super fast phone service---$450/year ---WE CALL YOU PERSONALLY! For more information call 1-801-272-4761 leave message!

    S.A.Advisory buys and sells stock recommended! Our trading habits vary according to how we feel. We most likely bought all recommendations prior to release.. If we produce a Corporate Profile and have been paid for the report--we fully disclaim!!!

    HAPPY INVESTING!!!! PS::VTPI---coming back to life---other cheap shots webp,

    See you soon!! http://www.saadvisory.com

    Hotline--1-888-711-7338( $2.00/minute) open account 1-614-439-7375($10 start up-fee)

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