Sweez,
It is not to good to be true. When SETO acquired Fuji Fabrication in July, they were only selling around 1,000 units a month. Since the acquisition, SETO has signed contracts through its existing channels and has also signed a huge contract with a very large company. This will be addressed in a future Press Release. Since July, the company ramped up to selling 10,000 units and is moving toward 40,000 units. According to the company, production and sales will be running at 40,000 units as a baseline. That is based on existing contracts. I am sure we all agree that SETO will continue to market more sales thus increasing that number.
What we have here is solid management aggressively marketing its products. I do not see how that can even be considered "To good to be true". What I consider "To good to be true", are companies that make statements about doing: $.30 EPS with never a quarter of revenues; Companies saying they acquired an oil field with reserves of $200 million; Gold mine companies that say they acquired 40,000 acres of property yielding .05 oz of gold per ton with reserves of $1 billion, etc, etc, etc.
SETO has been in business for many years and has had increasing revenues and earnings for numerous quarters, al beit small. One thing SETO does have is a large customer base of some very large companies including IBM. Mr. Pian told me that it is easy for him to use his existing base of contacts to sell new products, such as (Cell phone batteries and speakers. Imagine that ).
What behoves me is all the people out there that will jump on a Press Release that a company puts out talking about "Pie in the sky", with no merit. But a company comes out and states very believable numbers like: Revenues of $7.5 Million, and Income of $1.5 Million, and people say that is to good to be true. There are a lot of mid to high tech companies that run at these levels of margins. If you don't believe me go out and check for yourself.
If you don't believe the numbers, then I would not even read another post and look elsewhere, then again, maybe some people out there realize that these are pretty good building block numbers to base the foundation of larger growth in the future.
I hope that people continue to be skeptical at times and bring up questions or issues that are of concern. If that didn't happen, then I would start to worry as well. Nothing is ever a guarantee (except buying Intel or Microsoft 10 years ago....).
Brian H |
