I like this part about buy-backs and being under valued.
James
WSR: So you actually have segued to my next question, which is: If an investor were interested in purchasing shares in your company, what are the things that you would tell them to take a good look at before they did that?
SETO: Again, I think we have a very strong technology base. I think we have got a good marketing team, both within the company and with the reps and distributors throughout the world that are working with us. We have a very aggressive buy back of our stock, because we feel that it is extremely underpriced, undervalued at this time. And we expect dramatic growth. We're talking three to five times in the next two years, and a lot of that will go down to the bottom line. Our gross profit margins on some of our products, like the diamond tools and the technical ceramics, are between 50 and 70 percent. The other product lines that we've just acquired are in the 30, 40 percent; one approaching 50.
So we have a good base to work from, and most of that'll drop to the bottom line. We are using the minimum amount of people to produce the maximum amount of revenues and profits. It's kind of the way I've done things pretty much all my life. Whenever I've run companies for other people, I was always competing with my competitors that had four to five times the amount of people and half the profits. So I think if you have good people and everybody contributes, it works really well. |
