SETO Semicon Tools Inc. Message Board

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Microcap & Penny Stocks : SETO Semicon Tools Inc.

SETO 0.00630

-10.0%

Nov 5 11:11 AM EST

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To: jan_mike who wrote (67)	12/7/1997 5:46:00 PM
From: jan_mike	Read Replies (1) of 3222

Another missive from the advisor which addresses the Malaysian company's benefit. I reproduce it here in it's entirety. Dear E-mailer: This is a message that should answer more questions concerning Semicon Tool,inc. (SETO-nasdaq bb) Please recall that our last E-mail explained why we upgraded Semicon Tools, Inc. from a normal BUY to our STOCK-PICK of 1998. As you know we initially featured SETO @.07 back during early July 1997. We then notified our Super Fast Phone Service Subscribers that a position should be secured-we then notified our E-mails ( stock was priced around .20) Upon initial examination one would think that this situation sounds to good to be true--when investing we are usually optimistic that what we see in writing is usually correct and that management usually does not generate lies that are released to the investment community. If you have not seen our first E-mail-please visit our site,namely, saadvisory.com --once there go to the free update bar and review the last E-mail. **************NEW NEWS*********************************************** On Monday or Tuesday of this week SETO will be releasing earnings for the nine months--they also intend to produce a proforma with the results on both companies combined. We have talked with management and the combined sales will come in at $16.2 million and net income of $1.6 million or .08/share(based upon 20 million shares outstanding). Note: Book-value as of Sept 30th equals .41- based upon 20 million shares. This should demostrate that sales and earnings will easily reach $20 million and $2.2 million net or .10/share- for 1997 based opon a proforma. At present SETO is trading at .40 or sporting a PE of 4 based upon the estimated yearend results. As mentioned in our last E-mail--SETO's management discussed next years numbers with us in depth.. This is how it plays out! For 1998 revenues are expected to exceed $40 million with net income of $3.8 million or .19/share. We know that this sound like we are on drugs,but do not assume that is the case! As you know part of the sales and earnings that are anticipated for 1997 result from the re-cyling of electronics--of this years $20 million in sales for 1997 -$6 million comes for this business aspect. For 1998 total sales are anticipated to expand by $20 million over 1997's #'s-this primarily comes from this business segment! In our conversation with Mr. Pian (1914- 273-1400-Presidentof SETO) this $20 million that is anticipated is either signed contracts or firm commitments. This how SETO intend to grow to $40 million and net of $3.8 million for 1998. Our estimated PE for 1998 based upon .19 and a share price of .40 equals 2.1X..These values ofcourse indicate a screaming BUY! --ofcourse in our opinion and in most value oriented investors the same would apply! The company also intends to eventually list itself on either the NASDAQ or the AMEX. We also spoke with management concerning this statement and they know that NASDAQ requires a $4 share price. SETO has informed us that the maximum reverse stock-split that they would consider would only be a 2 for 1. This indicates that SETO could rise to the $2 level before a split takes place. Again with the earnings that are actual as well as estimated it should not take that long for this opportunity too rise to this level.. Using a conservative PE of 10, which is very conservative this stock could approach $2 within 6 months. We believe that this could happen much faster as SETO's story gets out in the investment arena. Another point to make is "why did this company sell itself so cheap?" The answer is simple that the Malaysian management wanted to realize a true valuation more quickly by tapping the US marketplace instead of waiting for a better climate in Malaysia. Both management teams have a large stake in the parent company, that is 50% partnership. At present we would not sell any SETO eventhough it has exploded from .10 to it's current level of .40..We believe if all that is released is accurate and that everything that is estimated becomes reality, that this will truely become our stock-pick and greatest percentage gainer and performer of 1998. Finally SETO anticipates the the 8K will be filed with the SEC within 10 days. Website--http://www.saadvisory.com For more verbage call 1-888-711-7338($2/min) first open acc at 1-614-439-7375 Please visit our site and sign up for your free subscription of Investor Business Daily newspaper We hope that this helps investors with information that reduces the emotional aspect of SETO ownership.Sometimes you fold'em,but this time you buy more and hold! Yours Truly William Velmer

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