Take the Nanosys S-1 information and use it to value Cetek:

Revenues in 2003 for Nanosys were $3 MM
Operating income (loss) for Nanosys in 2003 was .
Total number of shares issued (fully converted) was 47 million (rounded)
Nanosys CEO indicates that FIRST products will not be out until 2006.

Nanosys is planning to raise $115 MM so let's assume that they price the shares at $8 per share, for an additional 14 million shares, bringing the total to 61 MM shares at $8 per share = market cap of $488 MM.

Now, if Cetek had revenues of roughly $1 MM last year and was profitable, AND already has products and customers, one could make the argument that it should be valued above Nanosys. However, being conservative, let's assume that the market discounts Cetek by 50% relative to Nanosys. That would indicate an imputed value of $244 MM. If there are 1 billion shares outstanding, that's $0.24 per share.

There are a dozen arguments against this comparison - Cetek lacks the IP protection that Nanosys has, doesn't have $30 MM of cash in the bank like Nanosys, doesn't have a venture-backed CEO, partnerships with Intel and Dupont, etc. However, IMO once the Nanosys IPO is complete, the attention paid to nanotechnology companies, publicly traded, with real products and profits will increase enormously. Cetek HAS to benefit from the comparisons that will follow and there is no reason to think that it can't hit $0.10 per share this year (the Nanosys IPO is likely to occur in late June or early July).

overnight delivery from Jim Stock.

May 26, 2004

Via FEDEX Richard XXXXXX XXXX X. XXXXXXX XX. Meza, AZ XXXXX

Dear Mr. XXXXXX:

In response to your request to inspection the books and records of
Cetek Technologies, Inc., we are offering you two different methods of
satisfying your inspection rights which are set forth in Section 220
of the Delaware Business Corporation Act.

(1) You may come to Poughkeepsie, New York and inspect and copy the
records at the Cetek office on an agreed date and time; or

(2) You may send your representative to the Cetek office's to inspect
and copy the available records. You must sign under oath a Power of
Attorney giving your representative the authority to engage in the
inspection on your behalf.

Please contact my office at (866) 242-2405 to set up the date and time
and method of your chosen inspection. If you have questions, please do
not hesitate to call.
Very truly yours,
James Stock

cc: Fayiz Hilal Corporate Counsel

[This message has been edited by will (edited June 13, 2004).]

quote:

---

Originally posted by will:
Gman, email me at tgc@hotmail.com. If you already did I might have deleted it. put gmoney in the subject line so i recognize it, thanks,
will.

---