Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: James Lee Baldwin who wrote (2062)	3/27/1999 10:09:00 AM
From: TraderGreg	Read Replies (1) \| Respond to of 3222

From your prior link, the data is Trailing Twelve Months(TTM) and most Recent Quarter(MRQ). TTM thus includes 9 months of FY1999 and the last three months of FY1998 Price/Earnings (TTM) 14.88 Price/Sales (TTM) 1.16 Price/Book (MRQ) 3.97 Price/Cash Flow (TTM) 11.16 Per Share Data Earnings (TTM) $ 0.04 Sales (TTM) $ 0.54 Book Value (MRQ) $0.16 Cash Flow (TTM) $ 0.06 Cash (MRQ) $0.01 These values appear to have the effects of the Teik Tett acquisition backed out. Using trailing data totally ignores the impact of growth rate. Mr. Pian has repeatedly indicated that growth, looking forward, is strong. Depending on the industry, acceptable forward looking valuations based on a P/E that is several multiples of growth rate have long been used. (How else can AOL and YHOO be valued as high as they are??) To the best of my knowledge, I have never seen any statement from Mr. Pian that has assigned a growth rate less than 20% per year. Moreover, the battery segment is expecting a much higher growth rate for FY2000(current year) and beyond. Even assigning a P/E that is a ONE multiple of minimum growth, i.e., P/E of 20, you can see that the stock continues to appear undervalued looking forward with .05 or .06 EPS in the current FY 2000. I am looking at the last K not just for the numbers, but the words. For new investors, keep in mind that the difficulties of last year's TT acquisition, most noticeably the frustrations with refinancing the high level of old debt, were a significant "distraction" to management. As such, it diverted resources that could have been directed towards new acquisitions, and focused those resources on patching up the TT financing problems. Witness how much has been done since TT was jettisoned in early Fall 1998. As such, FY1999 should be viewed as a significant understatement of the company's FY 2000 performance. It is my belief that management's ability to know when to cut their costs and to have an escape clause in the TT acquisition that allowed them to cut said costs and move on is testimony to their acumen. I feel very comfortable with my SETO position. JMHO mind you. TG