SETO Semicon Tools Inc. Message Board

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Microcap & Penny Stocks : SETO Semicon Tools Inc.

SETO 0.00700

+14.8%

Oct 29 1:05 PM EST

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To: James Lee Baldwin who wrote (3131)	8/14/2000 5:23:19 PM
From: James Lee Baldwin	Read Replies (1) of 3222

Last One By: SETOFISHER $$$ Reply To: 3647 by BRONCO $$ Monday, 14 Aug 2000 at 3:35 PM EDT Post # of 3649 GOOD DAY SETO SHAREHOLDERS!!!! I am surprised and pleased with all the posts since Friday. There are thirteen that I feel should be responded to immediately. I hope that this one post will suffice as a proper response to all of them without any one individual feeling slighted. 1) There has been no dicussion whatsoever about SETO paying any cash dividend. It is in the best interests of a growth companies' shareholders for the company to retain any profits to further grow sales and earnings. This type of stock is purchased with growth of principal in mind as opposed to income possibilities. While the company could pay a stock dividend without hampering growth capabilities; at this time we don't feel that that is in the best interests of our shareholders. A stock dividend would have the immediate impact of lowering our share price by the same percentage as the dividend;putting us even further from that $4.00 price. On the positive side,however, anyone short would immediately become shorter by that same percentage. Thus let there be no confusion--- There is no contemplated dividend of any type at this time. 2) The MMs can hold or "juggle" a short indefi- nately; on an "in theory" basis. I will list the things that can change that for them. A)The need to deliver a physical certificate when a client requires them to be shipped to his home. Or if a client instucts his broker to hold his certificate at the firm in "safekeeping" with his name on it instead of in street name. B) The price of the stock surpasses the price of the MMs short price enough that the trader can't afford to carry the short (125% capital must be tied up to carry a short position). C) The trader's employer notices the position, does his own D.D. and insructs the trader to cover all or some of the short whether he likes it or not. D) All traders have a "box" , this is the amount of capital that can be committed at any time to a short or a long position. This amount is a FINITE number. So, if a trader has all of his box tied up in one stock his ability to earn an income is severely hampered. E) A trader (MM) has a life cycle; much like a fly. It's one month in length. His paycheck is based on the amount of all trading profits minus any trading losses; MINUS being "marked to market". All done every month with the closing day being the day three days prior to month end So that the trades settle on the last business day of that month. Marked to market means that any long or short position is assumed to be "flattened out" by adding or subtracting the difference betweeen what the trader bought or sold the position at and where the stock closes on the given day. If the difference is a gain,he earns; if it is a loss it is deducted from his profits;hence his paycheck. I believe that is why we always go lower the third business day before the end of every month. And we start heading there about a week before then on usually light volume. Because all traders (MMs) know when month end occurs. F)The short position in SETO could not possibly jeopardize our successful business as someone said they had seen before. For this to have occurred the underlying company must have had debt payable tied to its stock price. And /or debt convertible into stock so that the drop in price essentially made the debt holder the new owner. Thus they re-organized and were reborn. WE DO NOT HAVE THIS TYPE OF STRUCTURING. G) Traders are not stupid; they just hate being wrong. I believe they know that they have a real problem with their short in SETO. We are a legitimate, real company growing at a great pace; and we're profitable. They will cover when they can no longer thwart momentum as they have been successfully doing. When they do, stock should then trade based on the company and supply and demand; as the market was originally designed to do---Not based on the short position of two MMs and one non-MM. I believe that this covers most,but not all, of what I needed to respond to; I will try to get back on later for the balance. HAVE A GREAT DAY!!!!!!

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