Take a look at www.fallingshort.com, article on seto!!!
Here it is...
A look at SETO Holdings
Date written: Sep 12, 2000
By: Lou Ambio
SETO Holding, Inc. (OTC BB: SETO) operates as a broad based technical manufacturer in the technical products and consumer products industries. The company’s technical products division produces diamond tools, wafer fab supplies, and technical ceramics among other products and their consumer products division produces cellular phone batteries, rechargeable batteries for other uses, consumer electronics, and telecommunication devices.
It is also important to note that the company has an established presence in Malaysia with has complete manufacturing and distribution facilities. With their presence in Malaysia SETO has a low cost source of supply and the capacity to up to 30,000 dicing blades per month, not to mention the ability to manufacture all models of cellular phone batteries.
SETO’s technical group is comprised of three operating divisions, Semicon Tools, DTI Technology SDN.BHD, and East Coast Sales. Semicon Tools distributes and manufactures semiconductor fabrication supplies for the semiconductor and electronics industries and DTI Technology is the manufacturing arm of Semicon. This division does diamond tool manufacturing for the semiconductor, machine tool and jewelry industries and also produces ceramic and graphite slider plates for the hard disk drive industry. Despite the misleading name the East Cost Sales division manufactures and distributes technical ceramics for the aerospace/defense and commercial aircraft industries. They also produce clean room supplies for use in semiconductor plants, electronic manufacturing plants, and laboratories. Of course, what good is the production of all these interesting products if there is no one to purchase them? That is why it is important to note they sell their products to numerous Fortune 500 Semiconductor clients including IBM, National Semiconductor, Motorola, General Motors, and other Asian companies.
SETO’s consumer product group also has three operating divisions, Fuji Fabrication Sdn.Bhd, Hong Kong Batteries Industries Limited, and FIMAS SDN BHD. Fuji manufactures cellular phone batteries and other rechargeable batteries for use in computer telecommunication and home electronics industries, while Hong Kong makes rechargeable batteries for OEM customers in video, cellular, telephone, and other industries. Finally, Fimas produces PCB Assemblies, Multimedia products, CD Rom Drives, Super VCD and DVD players, and Plastic Injection Moldings.
On September 8, SETO Holdings, Inc. announced that it has entered into an agreement with Lucent Microelectronics Group, the leader in communications semiconductors. The agreement allows Lucent and SETO to share proprietary marketing, technical or business information including products and/or software relating to all information regarding Lucent Technologies Microelectronics Group's V.90 analog data/fax modem technology and, ADSL Wildwire modem technology, schedules, and products. Not to mention information relating to Lucent Technologies channel marketing programs. Simply, this deal should definitely lead to the growth of SETO’s telecommunication product line.
SETO also appears to have a strong plan in place for future growth. In the future they pan to sell the “SETO” brand name for products such as ADSL modems, Internet Phones, Set Top Boxes, Multimedia Speakers, and CDRs. Furthermore, SETO has teamed up with players in the Telecommunication Industry and ASPs to sell SETO’s manufactured products and share content and ISP income.
Though SETO will be announcing earnings later this week it should be important to note that the company is already profitable as last quarter SETO reported revenue of $5,289,422 as compared to $900,787 for the comparable period a year ago, an increase of 487 %. Furthermore, income from operations was $341,604 as compared to $11,864 a 2,779% increase and net profit was $272,871 which was 6,634 % higher than the same quarter a year ago. Not to shabby.
Finally, with 7.7million in net shareholder equity, 4 million is required for a NASDAQ Small Cap Listing, and a credit line from Merrill Lynch that was bumped up from $750,000 to $1 million on July 26, things appear to be going great for SETO, making it a bargain as it only maintains a market capitalization of $26 million.
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Numbers on schedule to be out tomorrow! |
