May be in play again. Received this on Friday
Sorry for the long post
WALL ST WHISPERS
Friday, September 5
[S. A. Advisory (801) 272-4761]
Semicon Tools (SETO) 0.135 bid, 0.15 ask, traded on the
NASDAQ Bulletin Board. SETO principally sells small
>precision disposable diamond tools used to manufacture
>electronic components and devices, which it either
>manufactures or purchases from exclusive suppliers.
> Through East Coast Sales Company Inc, a wholly-owned
>subsidiary, SETO also serves as a distributor and
>fabricator of industrial ceramic products and a distributor
>of "clean room" materials and supplies, primarily used by
>the electronics and defense industries.
> Currently, around 11M shares outstanding fully diluted
>52-week share price from $0.05 - 0.96. For the year ending
>1/31/97, net sales were $1.6M and net income was $213K, or
>$0.024 per share, an approximate increase of 28.4% over 96
>and a loss of $420K. At year end, the stated book value
>was $0.075 - trailing 12 months for FY97 actual PE equalled
>4.6X. All this is history.
> The 1Q of FY98 ending 4/30/97, sales increased to $427K
>from $376K, an increase of 14%. Net income was down
>slightly, that is $33.3K from $50.2K. Management does not
>believe that the 1Q earnings should be compared because of
>acquisition and start-up cost in Malaysia.
> 2Q numbers are due out within the week or so.
>Management states that sales will be at record levels with
>record earnings. We anticipate sales will surpass $490K
>and earnings/share will come in at around $0.01.
> Estimated year-end results again will be record, with
>record sales and earnings. Management anticipates $2M in
>sales and $0.04 per share.
> When you consider that SETO currently trades at 0.135 -
>a value oriented investor has to take a hard look. Our
>estimated PE for FY98 equals 2.75X, PSR equals 0.60 and the
>book value will equal around $0.115, LTD only $277K and NOL
>is over $1M.
> Bottom line: This opportunity looks very cheap. If
>SETO was to trade at only 10X earnings, then a 0.40 stock
>could be in order - a far cry from current levels - and
>this still would not be expensive.
> We have a fundamentally cheap, obscure and a high tech
>opportunity that offers investors limited downside risk
>with attractive upside potential. At current levels, SETO
>should belong in all mini-micro-cap portfolio's.
> For additional company information, call: (914)
>273-1400.
>Bacon Butt News Service (BBNS) |
