Here is the La Guardia retraction....best retraction I have heard in awhile...looks like financials will be here soon!
LA GUARDIA GFS RESTATES STRONG BUY AND HOLD RATING FOR SETO HOLDINGS, INC. (OTC:BB SETO)
WWW.SETOHOLDING.COM
La Guardia GFS continues its coverage of SETO Holdings, Inc. (OTC:BB SETO). Per a one year contract for Investor Relations, signed between La Guardia GFS and SETO on March 12, 1999, La Guardia restates a STRONG BUY and HOLD rating for SETO. The stock continues to be highly undervalued just ahead of the release of their 1999 Fiscal year end numbers. In a conference call last night from Malaysia, Gene Pian confirmed that the accountants were to finalize the audit, and they are expecting the numbers to be Press Released no later than Monday, March 29, 1999. Mr. Pian further confirmed that even though the final audit had not been completed, he still feels that $.03 EPS may be understated, and he declined to comment any further.
Mr. Pian is currently reviewing the Malaysian operations of SETO Holdings, Inc., including its cellular phone battery manufacturing facilities, operated under SETO's wholly owned subsidiary, FIJI Fabrication, Sdn. Bhd., operated out of Penang (http://www.setoholding.com/fuji/index.html). Pian stated that FIJI would be expanding its web site to include e-commerce, and anticipated on offering individual customers, low cost cell phone batteries via the Internet no later than the end of April, 1999. FIJI currently manufactures between 15k-20k batteries per month as after-market products for Motorola, Nokia and NEC cell phones, to name a few, and they anticipate this number will increase by over 400% within the next 12 months.
La Guardia GFS would like to make a formal apology for misprinting SETO's estimated Profits for Fiscal 1999. On Thursday, March 18, 1999 La Guardia issued an e-mail stating, "With a total of 11 million shares outstanding, EPS of $.03 would give SETO a profit of $3.3mm for 1998." This is a mathematical error, and should read, "With a total of 11 million shares outstanding, EPS of $.03 would give SETO a profit of $330,000 for Fiscal 1999."
In addition, we would further like to calrify that these numbers are for Fiscal 1999 (SETO's fiscal year ends on January 31st.) We were correct in stating that the company should be valued at no less than $.90/share based on EPS of $.03 ($330k profit x p/e 30 = $9.9mm market cap divided by 11mm shares outstanding = $.90/share), and that ultimately the company should be valued at a p/e ratio of 40 or better, making its natural trading range closer to $1.25/share.
La Guardia has been compensated by SETO to manage their investor relations ($5k cash retainer / 150k shares of restricted stock, said stock is restricted until March 12, 2000). In addition to the above listed compensation, La Guardia GFS has purchased in excess of 120k shares of stock on the open market over the past 30 days, and will continue to acquire additional shares in SETO as our portfolio management protocol will allow.
As always, we encourage and recommend highly that any investor do their own due diligence prior to making any investment, and we do not advocate purchasing shares in any company based on this recommendation and/or technical analysis alone.
PLEASE CONTACT LA GUARDIA GFS AT 800.292.1361 OR COMERCIO@RIOGRANDE.NET.MX WITH ANY QUESTIONS PERTAINING THIS E-MAIL.
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