S.A. Advisory E-Mail Update
Special E-mail update concerning SETO

January 16, 1998

Dear E-mail Subscribers:

Before you all commit suicide, please focus on the facts:

SETO had sales of $16.2 million for the nine months and had net income/share of .09..

We spoke with Mr Pian Thursday night from Thailand concerning the weakness in SETO shares..His explaination remains the same-" Russo Securities is the seller and that the firm still has stock for sale". This firm placed its customers in this issue when SETO was trading at $1.00--now they are selling them out!!

He also repeated his yearend numbers for us----Year ending January 31, 1998 SETO will have revenues of $21 million and earnings of .11 to .12/share.

We suggest that you just relax...

He also hopes to release some "new" news when he returns to the US on or about January 19,1998...

Based upon the current share price of .30 and est. earnings of .12--SETO is trading at an est. PE of 2.5X. Stated book value at the end of the nine months ---.40. At the current price of .30, SETO is trading at a 25% discount.

Mr. Pian still estimates that revenues for fiscal 1999 will reach around $40 million and net income/share will reach around .19.

All of these numbers have been verbalized by Mr. Pian--We have not sugar- coated anything!

If all comes to fruition this issue will become a huge winner. The upside for 1998 makes us name this micro-mini--"stock pick for 1998".

Don't get shaken out of this issue because of market nervousness...

Yours Truly,
William Velmer


PS: GEGI looks very attractive at the .44 level--would not chase--will take time for all of the papers to be signed..See latest press releases and visit our site for complete story--See Dec 1997 newsletter.

Watch BNSWF warrants --Big promo coming soon because of earnings strength. If you can buy around $1.00.

Payless Cashways---You have to own this issue PCSH!! See newsletter--Jan 1998 for complete story--This is also a "stock pick for 1998".

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