S.A. Advisory E-Mail Update
November 20, 1999
Subject: New S.A.Advisory newsletter released -Nov 20,99-See more info within this e-mail
Dear E-mailer's http://www.saadvisory.com
If you don't want our newsletter or e-mail service-http://www.saadvisory.com/upddate
Once at the site "click" the arrow on the add box which now changes to delete- play
your e-mail address within the box and then send.
We have not been paid for any of our recommendations within this e-mail. We may
own all listed stock prior to any recommendation and may sell at any time.
1. Our "new" S.A.Advisory newsletter for Nov/Dec 99 in now online.
OTHER IMPORTANT STUFF
1. We are placing a sell recommendation on our remaining position in CYMER,Inc. (cymi)
We recommended cymi 2/01/98 @ $16--currently priced @ $45 1/4--for a 185% gain
2. FPCX-as mention within the "new" newsletter in a partial porfolio review-that this
stock will remain a DOG until management makes a change! That is exactly what happened
on 11/18/19. The stock has exploded from .44 to $ 1.875. We initially recommended via
e-mail July 29,98 @.50 ( released within Sept/Oct newsletter @.81). We think that this
stock has now reached a level that has made us alot of $. We believe that a 50% sell
recommendation is the current opinion. This move results in a 275% gain.
3. ARTM--Everyone thinks that because this company has earned.32 trailing 12 and currently
trades at .90,it's a screaming buy! In reality it would be, except that the .32 has been
spent on garbage stock positions in money losing operations. Instead of holding millions
of dollars as an asset, which of course is a first class currency-management has decided
to buy third-tier currency that is basically worthless. The press from the company remains
depthless and the IR is horrible. We initially recommended ARTM @.375 on 1/19/99. We
are more inclined to SELL 1/2 of the position for a 140% gain. Management only understands
when shareholder rise up an refuse to continue to buy. This situation could have been
a huge winner-the reason that it isn't is because of management!
4. FCIN-As reviewed within the current "new" newsletter--Looks like our stock pick for 00!
We based our decision on the severely undervalued fundamentals of FCIN. In addition, this
is a great CHINA PLAY! Most of the business of FCIN is conducted within the Pacific Rim!
The WTO will be a great boon to companies like FCIN--Strong Buy Recommendation!
WE VISITED MANAGEMENT OF OSCR AND SHPS ON 11/19/99
We had the opp. to visit Rami Adler( managing director of OSCR) and meet M. Markow( Worldwide
corporate finance).
The facts and our opinion.
1.Financials will mostly not be released until Dec 99
2.Press is coming next week
3.It is possible that up to 30% of shps shares currently still held by OSCR may be
sold in order to raise a HUGE sum of money.
4.The third quarter numbers concerning the communication angle of OSCR is believable-
( $60 million and $14 million net)--BDO may change some of the values depending upon
accounting rules. Rep from Israel says, " fourth quarter numbers
are in-line with the 3rd quarter."
5. Science Dynamics is only a supplier and OSCR has no interest in buying the company-
The Israel conversation," Contracts with BRKT may replace product that currently
is being purchased from SIDY. This has not been verified, but SIDY is not a merger
candidate !
6.According to Mr Rami Adler," the $19.95 unliimited phone calling works"- he knows of
no problems.
7.Concerning SHPS-The third quarter number for the sub was stated at $20 million and $6
million net! This was a one time sale of a site and we understand that this will not
be repeated.
8.SHPS recently released a very positive press release that could result in a huge profit
for the company. The company intends to sell 1,000,000 computers for $299.00 (monitor
not included). The catch: review corporate target E-mails daily. We understand that
1 million computers cost around $500 million- we believe that this donation of computers
will actually be exchanged for ads. ( 1 million e-mail address are worth a huge amount
of money! Renting e-mail lists yields $450/1000 names. The numbers could be mind-blowing!
If SHPS is able to sell all computers, that is, 1 million units,this will result in $300
million dollars. If we assumed that profits from this program could result in $150 million
and base this upon the 22 million shares outstanding(SHPS)--the earnings/sh could be HUGE!!!
9. SHPS will run ads in the NY Times,LA Times and USA Today during the week of Nov 21-27 for the
promotion. It is evident that SHPS could and should zoom, which in turn should also cause
OSCR to rise.
Bottom-line: If you are an internet "player" both of these issues are rated with speculative
BUYS!
( We own stock in both issues. We purchased 8k of OSCR in the open market @$3/sh and $ 10k
of SHPS in a private transaction on or about November 7,99.
In our opinion, Internet stocks are very risky investments! The technology is changing so fast
that winners today could be the losers of tomorrow! OSCR and SHPS have huge upside potential,
but we would not sell the farm for either!
Happy Turkey Day, William Velmer
ps. visit our virtual mall and buy some stuff so we get some green --this helps our service!