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 (1945)	3/20/1999 6:19:00 AM
From: TraderGreg	Read Replies (2) of 3222

In the Email, the following was indeed in error: "With a total of 11 million shares outstanding, EPS of $.03 would give SETO a profit of $3.3mm for 1998." They did overstate the EPS by a factor of 10. But if it was intentional, why did they correct it when getting the valuation: "Simple valuations would prove that at a P/E ratio of 30 would give SETO a total market capitalization of $9.9mm or $.90/share (when reviewing other companies in related business sectors, we find that the average P/E ratio is currently closer to 40)." To get a market cap of $9.9mm, they would have had to multiply $330,000 earnings by 30 price/earnings, which would be the correct calculation. If the 3.3mm profit calculation error was indeed intentional as you say, wouldn't that error have rippled through and computed a price of $9.00 per share? One other point: The math error is a bit disappointing, but as a matter of fact, I have made an order of magnitude calculation error myself when in a rush. I am also not about to pass judgment on this firm solely because they don't have an NYC zip code. Actually, I would probably be more leery if they had gotten a firm norte of our border. Eh? <g> TG

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