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: TraderGreg who wrote (457)	1/28/1998 3:34:00 PM
From: Max Fletcher	Read Replies (1) of 3222

As Peter Lynch would say, in the end Earnings is what will (eventually) drive the stock price; put another way, when you buy shares in a co you are buying a portion of their earnings. In my example of HTEK, if I buy 1000 shares for $2000, and they earn .62/share, in a sense I have earned $620 on my investment. Of course, rather than get that in the form of a dividend, I hope the co will put that $ back into growth so they'll earn even more next year, and so on. If they maintain or grow earnings the stock price will eventually increase to reflect the earnings. I realize this is a simplified example, but sometimes it helps to think of these things in simple terms...Max (btw I'm not trying to hype HTEK, in fact earnings will be slightly less for '97 vs '96, though strong backlog should make '98 better. Was just using it as an example)

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