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skitahoe

02/02/05 12:01 AM

#2059 RE: PennyWorld #2058

Penny, I was including all materials used when I put a 10% figure on it. I figured to maintenance costs etc. in figuring the other 10%.

I have no idea how close I could be, but I believe most manufactured products are marked up about double their cost so if I'm correct, I believe I'm in line with normal commercial practices.

I would expect that if CTKH were earning $5 million a year much of it would be reinvested in the business. The demand seems so great that they'll need to be adding ovens each year for the foreseeable future, and I suspect they'll want some of them to be larger than anything they've built to date. Flat screen displays in the 50" to 65" range are becoming very popular, if CTKH can provide media in that size for the next generation of flat displays they should generate substantial revenue.

Gary


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DrLarzo

02/02/05 1:30 AM

#2061 RE: PennyWorld #2058

Penny, I truly believe that FH's incentive to decress OS is as stated "to increase shareholder value" as well as his own and his family's. He wants Cetek to succeed and success is $5.00 and the Nas. To accomplish this is to reduce the OS with a buyback, and, or, when the time is right a carefully executed RS, an RS that will not wipe out shareholder value. Looking forward, and it may take years, FH can carefully buy back shareholder shares and retire his own to decrees the OS to reasonable level. I wish we could go to $.50 overnight but it ain't gonna happen. I think the best stategy here is to sell the runups and buy the dips to increase your shares and hold on for 2 to 7 years. Be patient. Good Luck, Lars
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IL Padrino

02/02/05 6:20 AM

#2065 RE: PennyWorld #2058

To buyback 3B shares right now to get the O/S under 100M would take $12M. I don't see Fayiz spending that much money on a buyback when it could be used towards other things.
Where did Roundmot say the $80M in sales was probable? I missed that somewhere.
If that is the case, then maybe buying back 3B shares is possible, but $80M is a huge number for selling ceramic substrates. Anyone have any idea how much one of those things would cost a buyer? I can't see it being more than $50 depending on the size.
So, if the average cost of a substrate is $50, Cetek would have to sell 1.6M of those things a year to reach $80M in sales.
I guess it's possible if they land some contracts with cell phone and computer manufacturers.