S.A. Advisory E-Mail Update
Stock-Pick of 1998

December 4, 1997

This situation, in our opinion, has the potential to reward aggressive investor types with huge upside during the next 12-months. Please review the listed recommendation below. We have decided to honor this opportunity with the "title" stock-pick for 1998.

The company, Semicon Tools,inc. (nasdaq bb--seto) was first introduced on or about July 9, 1997 @ .07/share..At that time the company's businesses consisted of selling small precision disposable diamond tools used to manufacture electronic components and devices which it either manufactures or purchases from certain suppliers. The company also serves as a distributor and fabricator of industrial ceramic products and a distributor of "clean room" materials and supplies primarily used by the electronics and defense industries. When we featured SETO-revenues were around $2 million and earnings were around .025/share.



SETO announced on Dec 1 1997( see news release on tape ) that it had completed the acquisition of Teik Tatt Holdings Co., a privately held Malaysian company with locations in Penang and Kehad,Malaysia and Vietnam.

The company (TTH), is one of the leading Malaysian manufacturers of plastic products such as rope, yarn, twine, high quality rubber bands and since 1996 it has recycled plastics and nonferrous metals from cable and precious metals from electronic components and circuit boards obtained from obsolete computers.


TTH had consolidated revenues of $14 million for the year ended Dec 96 with net income of $1.8 million audited! (US Dollars and after taxes).

For the nine months ending Sept 30,1997 it had revenues of $14.7 and net income on $1.5 million (unaudited).

SETO purchased all of the issued and outstanding capital stock of TTH for an aggregate of 10 million shares of its common stock constituting approximately 50% of the company after the acquisition.


There is 20 million shares outstanding with only 6 million free-trading. For the year ending DEC 31, 1997 combined revenues will be at least $20 million (US $'s) and net income after taxes will be $2.2 million (US $'s). This equals .11/sharein earnings! (Note: These values come from management directly and can also be seen in partial from news release dated: Dec 1 1997.

The shareholders equity as of Sept 30,1997 for the combined companies equals $8.3 million (US $'s) or .41..that is --the stated book-value is .41

According to management--1998 revenues will reach in excess of $40 million and net income will equal $3.8 million after taxes( The Malaysian sub has tax credits from gov and SETO has $1 million in NOL). The income/share equals .19..

Does all this sound like Pie-in-the-Sky-----Call the company and ask for Mr Pian-1-914-273-1400.. He will tell you the same thing!! SETO is also fully reporting (10Q and 10K filings are current)..

First realize that the melt-down in Malaysia actually benefits SETO -since their products are exported out of the country for US dollars. The currency devaluation in local terms actually reduces costs for this contract manufacturer.


At present SETO is currently trading at .22/share--based upon the numbers we have at our disposal, that is revenues, earnings and book value we can assume certain valuations.

For the year ending DEC 1997, according to management SETO will earn .11/share--based upon a share price of .22 we formulate a PE estimate of 2X..If we assigned a conservative PE valuation of only 10- then our share price would be $1.10--a mind-blowing 400% appreciation from current levels. This is a conservative PE value--please keep this in mind!

This stock could easily trade at 3 time stated book! The stated book value as of Sept 30,1997 was .41--This would give us a value of $1.23--This would be 449% above it's current share price!

If we look at PSR (price to sales ratio)--the current market-cap for the combined corp is only $4.4 million, while the total estimated sales for 1997 is $20 million. This gives us a PSR of only .22..If SETO were to trade at a conservative value of 1 times sales then our share price would be $1.00 --or a 354% above current levels.

All the above does not even take in account estimates for 1998!! The numbers for 1998 are even more enticing!

Anyway you look at this situation-SETO is super-cheap! The overall upside potential is huge !! The downside is extremely limited if at all! This is our Stock-Pick for 1998! We feel that this opp has DOLLAR written all over it!! STAY TUNED!! Broker contact::Mike Chesler- 18003311355

We are also adding and will be monitoring PCSHV !!The company recently emerged from chapter 11 and is still un-discovered!! The stock is currently around $3.125 ..The company, Payless Cashways, the nation's 5th largest retailer of building materials and home improvement products.. Book around $9, sales around $1.4 Billion and estimated earnings( according to management equals around $1. for 1998.. This is also winner in our opinion!! It still trades on the nasdaq BB---See release Dec 2,1997..This is a great opp! We will be monitoring in our E-mail portfolio for % gain performance. Broker --Greg Nelson--1-800-269-9460

We will be updating our 1-888-711-7338 ($2/minute) during the evening of Dec 4 1997 --More detail on both opps listed in this E-mail If you do not have an account for this # call 1-614-439-7375 ( $10 setup fee)

Visit our website http://www.saadvisory.com

Yours Truly William Velmer
PS While at my site sign up for Investors Bus Daily for Free!!

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