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Microcap & Penny Stocks : SETO Semicon Tools Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Brian H. who wrote (1313)	10/5/1998 9:53:00 PM
From: Brian H.	Read Replies (1) \| Respond to of 3222

I spoke with the company this afternoon and asked a few questions that several people on here have asked me in PM's or on the thread. I am sure many people, including myself are wondering why TTH was willing to undo the acquisition of their company. According to SETO, TTH didn't have a choice. When SETO acquired TTH, SETO had several clauses put in the contract (purchase agreement of TTH) that were triggered by the shut down of the credit lines and increasing interest rates. Once the loans were called and not allowed to be refinanced and the interest rates on the existing loans were readjusted upwards, the contract was voided. Additionally, according to the company, it is easier for a private Malaysian company to refinance debt at lower levels than for a public foreign country. Thus, SETO protected itself from uncontrollable financial situations, and TTH is able to refinance its existing debt at lower levels now that it is a private Malaysian company again. The Fuji Fabrication plant not only produces cellular phone batteries, but also other Lithium Ion and Lithium Polymer batteries. They also produce batteries for computer CMOS's, high end disk drive batteries for fault tolerant systems, etc. I again asked about the baseline figures that they are running at and was told 40,000 units. I asked if this included the large contract that they will be announcing and was told that it did not. The stereo company that they just acquired is a spin off of a large Malaysian private company presently doing over $100 million in sales. The company manufactures a mid-level stereo system that competes with Sony, Pioneer, Technics, etc., retailing for $1500. The company is presently doing $1 1/2 - $2 million in sales. At this time they are only selling the stereo systems in Malaysia, but Mr. Pian is getting UL approval and once that is finalized, they will be selling in the U.S. Since these stereo systems are manufactured in Malaysia and have special tax benefits and tariff considerations, these units can be sold at lower prices than the aforementioned companies and generate higher profit margins both here and in Malaysia. Brian H.