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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: hooters_akimbo who wrote (2109)4/1/1999 10:50:00 AM
From: Joe Bilich  Read Replies (1) of 3222
 
I think a PE of 40 for SETO on a sustained basis is really wishful thinking. They are not Dell, they are a bulletin board stock, they operate in Malaysia which is not really known or trusted by the investment community at large, they are something of a conglomerate of disparate operations, etc., and will be discounted for all of these reasons.

I would be quite happy if SETO were given a PE of 20 on its trailing results--the kicker is how much the market will add for anticipated growth. A 20 PE on .04 is only an 80 cent stock. If the market values the forward earnings growth (beleives they will happen) then SETO has considerable upside. A PE of 20 on FORWARD earnings of, say .20 gives a $2 stock.
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