To: Bill Story who wrote (1574 ) 5/18/1998 11:55:00 AM From: flightlessbird Read Replies (1) | Respond to of 4230
Re: Saadvisory comments -- "If Wall Street knew that TGSK was trading with this level of profit-you can bet your LAST $$$ that this situation would not be at current levels.Based upon 1998E numbers TGSK is trading at 3.5X, while only trading at 2.6X for 99. This issue is really a SCREAMING BUY at current levels!!" Sounds pretty good, no? That is part of Saadvisory's original recommendation at 1 1/8. Now that it is a buck higher, saadvisory sure cuts back on its enthusiasm. Remember this is one independent newsletter's recommendation. One man's opinion. And I don't believe a completely objective one. Check this out: "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." How's that strike you? That was in saadivsory's latest email that was forwarded to me. What does it mean? They admit to buying stocks before recommending. This may strike you as distasteful but it is not. Analysts at all the large brokerage firms do this. They accumulate a large position for themselves and clients and then issue a strong buy recommendation. They do the opposite when they are ready for a sell recommendation. It's how money works. It's not completely fair but it's part of the game. Saadvisory is no different except that it initiates coverage on some otc stocks as well. Keep this in mind: 1. Saadvisory likely held a very large position in TGSK at $1 before it recommended its pick to its investors. 2. Saadvisory likely sold 50% (or more) of its holdings at $3 before it recommended its profit-taking sell on 50% of TGSK holdings. 3. If you follow saadvisory, you will see that it recommends a NUMBER of new stocks each month, all of which you can assume saadvisory took a large position in before making its recommendation. 4. If saadvisory members kept all of their money locked up in TGSK for a significant period of time, then they can't move that money into the new saadvisory picks that saadvisory has already accumulated itself before recommending it. 5. But TGSK actually is a good pick and likely one which saadvisory will issue a second buy recommendation on later after earnings and after the SEC approves TGSK's Form 10. The hope for saadvisory is that the price successfully drops back under $2 where saadvisory can accumulate a further position before again recommending a repurchase of it and a higher price target. See how this works? Pretty nifty, eh? Welcome to the world of stock recommendations. I don't say any of this with ill will towards saadvisory. It is done all the time and it is how most analysts at larger brokerage firms are assets to their companies and make them and their large clients money. It's just part of how the game is played. But I think it is helpful for everyone to see how this works. That way they don't view this one individual's opinion in a vacuum. Keep in mind too that saadvisory labels itself a conservative newsletter, yet they provide coverage on many, many highly speculative picks. Truth is their analysis can be conservative and quite helpful. I think the piece they did on TGSK was very well-done. I have some clear differences with their opinions as well but hey that's what makes the world go round. Please don't misread me. I am not criticizing saadvisory here. Not at all. They have their opinions just as I have mine. I just want investors not to freak out over their last 2 commentaries. They should be viewed from the more proper perspective which is how this all works. Saadvisory made its members 200% on TGSK. It is in saadvisory's best interests to tell its members to take profits and put them into other saadvisory picks (which saadvisory has already accumulated). And I can never argue with profit takers. I feel they will miss out on a larger ride, but that is their choice. I am grateful that saadvisory introduced TGSK to so many new investors and hopefully they all won't follow the lead and will instead retain a very large amount of their initial purchase. TGSK is as promising as ever and I have a very strong feeling that saadvisory will reinitiate a buy position on TGSK in the future when it is in its members' best interests to do so. Newsletters are a strange breed but can be helpful. Keep in mind that in contrast to saadvisory's latest opinions stand Wall Street West: "Tigershark Enterprises (OTC-TGSK-$2 3/8). We sent a stock alert out on this one when it was at $1.04 a few weeks ago. Since then it has steadily risen to more than double that price. The company appears to be solid and should now be rated as a long term buy. TGSK is a distributor of Mercury brand motors and lubricants." I figure this back and forth should continue until we get form 10 approval (time frame was 30-60 days from April 22, so it should come soon) and all the factors are in place for a Nasdaq small cap listing. Then the words "told you so" are going to become more common than a Bulls NBA championship. Please remember that saadvisory has introduced TGSK to new investors who respect saadvisory's advice. Ultimately this will benefit TGSK as many will continue to hold TGSK, i.e., don't insult the newsletter just because of its recent positions. Saadvisory can be very short-term oriented but I believe it will come back around and reissue a buy recommendation soon. Hope this picture helped. By the way, their website is saadvisory.com and TGSK is listed in the latest monthly newsletter. The writeup is good even if I believe it is extremely conservative. BTW - his latest two commentaries were short and came via email to subscribers so you won't find them on his site. You must register and that is part of how he builds his subscriber base.