S.W, ZSUN has settled in a narrow trading range during short covering...
MM's appear to be in cahoot to box the stock and help ensure inexpensive short covering, although rumors of a short seller going into liquidation over this failed short (their target was less than $4.00 post split) are starting to come through.
ZSUN will end up being a disaster for many SSB's (Short Selling Bashers), as they completely miscalculated the intrinsic strength of the Company and long shareholders resolve and wrongly believed it would be a pushover. A few more will lose their shirts on it, as it has become clear that discreet Institutional buying, taking advantage of the circumstances is, IMO, taking place now. I am of the opinion that some 35% of ZSUN is now owned by Institutions in advance of the listing on NASDAQ.
What was the SSB's miscalculation? When the professional shorters (Fiero, Fahnestock, etc...) got together to plan the shorting of ZSUN, they didn't know about the pending acquisition of OIA. Without OIA's tremendous earning ability, it's very likely that the SSB's would have succeeded in driving the stock much lower. But individual and Institutional investors are no fools: they clearly see the money rolling in, do a few calculations and conclude the stock will be over $30.00 by year's end. As a result, I believe we should expect in the near term that one or more major players will issue coverage and a buy recommendation on ZSUN and the stock will then RISE!...
The appointment of new CEO Scott Elder (founder of OIA) is a very BULLISH MOVE and with Mr Tobin in Hong Kong and Mr Montandon in Manila, ZSUN now has a great team strategically placed. I expect the filing of the 10SB Form to take place at the end of June, or early July, at the latest. The Bashers are about done here and their bosses will shortly recall them or re-assign them to more tender and accommodating preys....
The first and second Quarters results should be released in the second week in July, and based on earnings already published by OIA, I expect a net exceeding $2 Millions (compares with $1.1 Million for the whole of 1998). My post-split target of $30.00 to $40.00 by end of 1999, based on EPS of 32 cents and PE of 100 remains in place, bearing in mind I am a long and clearly biased investor.
Regards, F. Goelo + + + |
