***FORENSIC ACCOUNTANT FRISY SPEAKS AGAIN, SAYS "ZERO" ***
By: frisky
Reply To: None Sunday, 30 Apr 2000 at 5:46 PM EDT
Post # of 19717
How much is the chance that the E could be removed before June 2, 2000? ZERO.
If one takes the audited balance sheet as of 12/31/1998 from 10sb version 3 (the last time ZSUN presented the balance sheet as of 12/31/98), the audited balance sheet as of 12/31/99 and income statement of 1999 from 10sb version 5, and try to recreate the cash flow statement of 1999 presented in 10sb version 5, one will discover that this is mission impossible. No wonder, ZSUN did not present the comparative balance sheets for every version of 10sb. You are not going to find any listed companies with a single audited balance sheet in conjunction with an audited cash flow statement.
If one removes the unrealized and realized gain of marketable securities, ZSUN actually lost $300,000 in 1998 . Instead, ZSUN reported a profit of $.47 per share in 10sb version 1, a profit of $.11 per share in version 2 and version 3 , and a profit of $.04 per share in version 4 and version 5. Since those securities were from exchanging its own shares with the shares of the related parties, the gains should be reclassified as additional paid-in capital. One does not make money from selling ones own stock. Moreover, if one removes the one-time gain from selling Asia4sale, realized and unrealized gain of marketable securities and account for all the potential shares that will be issued to former OIA shareholder, one will discover that the diluted operating EPS of 1999 is in a single digit.
ZSUN?s financial statements did not follow generally accepted accounting principles. Jones & Jensen did not follow generally accepted auditing standards. I do not believe that anyone in this board has ever seen a CPA firm offers unqualified opinions for all the five different versions of financial statements in two time periods.
There are many more questionable items in the financial statements. ZSUN deserves to be in Pinksheet.
IMO, Since 90% of ZSUN?s revenues and more than 100% of net income are from OIA, an investment education company like Wade Cook, it does not deserve a whopping 80 to 100 PE ratio (based on diluted operating EPS.) Listening to the touts is hazard for your wealth.
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