the battery company's future looks bright. It was a incredible buy IMO!
You ain't kidding. Consider this, for 100,000 shares of SETO stock, they acquired an operation that, at the time, was doing 1000 units a month OR $1800 earnings per month(based on 18% margin on a $10 battery). Now, that anemic level of production translates to 21.6 cents per acqusition share for that acquisition only, i.e., the battery subsidiary, at a cost of 100k shares, was already nicely carrying its share of the load.
At current levels of production, 5000 units per month, the battery company is contributing $1.00 per acquisition share
At near term production levels of 50,000 units per month, we're talking $10.00 per acquisition share. Hell, even distributed across the whole of SETO's 11mm shares, that would contribute nearly 10 cents per share to the SETO totality!
Now, I'm not trying to say that Mr. Pian can string together another 99 deals as good as that battery company, but I think you see the point. He took the near term pain by backing out TT and is now looking to use the shares returned from that to make more accretive acquisitions. On a per share basis, the battery company blows Teik Tett away, ain't even close.
BTW, keep in mind that most BBs would have probably handled the pain from the TT backout by doing some mega reverse. Even when it was at a dollar, Pian didn't even consider a small 1 for 5 reverse to get to the NASDAQ small cap. He wants the company to get there on its own. Not sure if it can get all the way to the NAZ without some kind of reverse, but at least they are trying.
This stock was incredibly oversold at 20 cents and I am very confident of its mid to long term future. Let them walk it down again and I will keep buying.
TG |
