I got an e-mail at 2:05 pm from SA Advisory on OSCR and SHPS, that confirms...
substantially my last post on the subject... I have edited the information that doesn't concern "our Stocks"....
Dear E-mailers: saadvisory.com
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. Our "new" S.A.Advisory newsletter for Nov/Dec 99 in now online.
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 unlimited 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!
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