ZSUN News: "Friday December 10, 6:03 am Eastern Time
Company Press Release
Access 1 Financial Issues Buy Recommendation With $36
12-Month Projection On ZiaSun Technologies
SOLANA BEACH, Calif.--(BUSINESS WIRE)--Dec. 10, 1999--ZiaSun Technologies, Inc (OTC BB:ZSUN - news), a
profitable Internet holding company, today reported that California-based Access 1 Financial initiated coverage of the
Company with a buy recommendation and a 12-month price target of $36 per share.
The initial coverage of ZiaSun Technologies by Access 1 Financial noted that the Company ``is unique in holding a strong and
often dominant market position in the rapidly emerging Asian Internet market while retaining strong ties to American and
European markets. The incorporation of a number of rapidly growing Internet and e-commerce subsidiaries into the ZiaSun
corporate fold has increased its competitive advantage in both Asia and the United States... Particularly important is the
Company's strong regional ties and experience throughout the Asia-Pacific Rim, offering it a significant competitive
advantage over newly-emergent European and American corporations seeking entry.'
The report also stated that the investment potential for ZSUN ``...is also increased by its diverse service suite and the
substantial integration of its subsidiaries, eliminating the need for outsourcing and offering clients comprehensive Internet
service and solutions... We recommend the accumulation of its shares for appropriate investors interested in supporting a
well-managed company; one that will likely exceed our 12-month projection of $36 per share, reflecting a valuation of 10X
estimated year 2000 revenue.'
Access 1 Financial's recommendation on ZiaSun Technologies also included statements regarding future spin-offs of ZSUN
subsidiaries (although not calculated in Access 1 Financial's forecasts) and the resulting benefits to the Company's financial
results: ``We project a factor in ZiaSun's future value to be in its inherent and proven ability to select and purchase profitable
niche market Internet properties, and to improve their operations through management and the synergies created through
ZiaSun's network. The profitability of these entities does not simply lie in their operating value, but also in their ability to be
spun off from ZiaSun. ZiaSun is currently finalizing the spin-off of Asia4Sale.com. The specifics of the final spin-off
agreement are not yet finalized, but ZiaSun is expected to retain partial ownership of the site and show tremendous return on
investment from the agreement (expected minimum of $5 million to the bottom line in Q4 1999 and Q1 2000). This type of
spin-off will allow greater investment in subsidiary operations while ZiaSun is still able to profit from improved operations
through its wholly retained network and those of its spin-offs.'
Comparative analysis included in the report provides investors additional insight regarding present trading of ZSUN relative
to its publicly traded peers: ``At current valuation, ZiaSun represents a value play in the Internet industry as it is trading
sharply below expected multiples for both its industry and anticipated forward growth rate. The recent IPO of China.com
shows the high valuations that US investors are beginning to give Asian Internet properties. Since going public at $20 per
share, its stock has surged to over $100 per share despite lacking large revenues or a solvent earnings base. Much of
China.com's valuation can be attributed to its position within the rapidly expanding Asian Internet marketplace. ZiaSun is also
firmly grounded in the Asia-Pacific region, possessing significantly higher earnings and revenue.
The high valuation of China.com mirrors that of other US Internet companies with similar models to ZiaSun subsidiaries.
TheStreet.com is currently a leading provider of investor information and materials aimed at helping readers make informed
investment decisions. Its business model is similar to that of ZiaSun's Online Investor Advantage site. However, Online
Investor Advantage goes further, providing more educational materials to investors. Additionally, the convergence of
Swiftrade.com with the Online Investors Advantage site will provide greater benefits to both ZiaSun and users of the site as
trade execution is added to the investor education process. Altogether, the Internet Holding Company model has proven
extremely successful on a valuations basis. A similar Internet Holding Company, CMGI, is currently trading at over 90X
revenue. We expect ZiaSun to move towards these types of valuations as more of its subsidiaries are spun-off and as the
Company continues to outperform competitors on revenue, earnings, and margin basis.``
For a complete copy of the buy recommendation on ZiaSun Technologies, please contact Access 1 Financial directly at
310-581-7997.
ZiaSun Technologies, Inc. is a leading Internet holding company focused on e-commerce and specialized online support
services within Asia and other international markets. The Company's Internet offering includes Asia4Sale
(www.asia4sale.com), AuctionAsia (www.auctionasia.net), MEDIAhits (www.mediahits.com), Momentum Asia
(www.momentumasia.com), Momentum Finance (www.mfinance.com - a top 100 financial website), Momentum Internet
(www.momentumplus.com), Online Investors Advantage (www.i-advantage.com), PINmail (www.pinmail.com), Search
Dragon (www.searchdragon.com), ServiceLive (www.servicelive.com) and Swiftrade (www.swiftrade.com).
Note: Any statements released by ZiaSun Technologies, Inc. that are forward-looking are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward-looking
statements invoke risks and uncertainties that may affect the Company's business prospects and performance. These include
economic, competitive, governmental, technological and other factors discussed in the statements. Readers should also note
that the Company does not endorse any statements made within this release by third parties, and only provides such statements
for informative purposes.
Contact:
OTC Financial Network
Geoffrey Eiten, 800-230-3519/781-444-6100 ext. 13
geiten@otcfn.com
www.otcfn.com/zsun
or
ZiaSun Technologies
Mark Harris, 858-350-4060
mark@pinmail.com
www.ziasun.com |
