John, ZSUN's sales until recently have been tightly controlled by
Market Maker Fahnestock who sat on the offer for weeks on end at a set price, allegedly selling "Naked Shorts".
The stock moved from $7.20 to $11.25 in a few days when there was a general call for the physical delivery of the Shares Certificates in an effort to break the Deadlock. It is believed that the short position has now been substantially reduced.
The market will probably remain controlled around this level until a bevy of Bullish news come out: filing of 10SB Form, latest Business developments, and release of the earnings for the first 6 months of 1999, all of it expected on or before 27th July. After filing of the 10SB, I anticipate professional coverage of the stock by one of the Brokerage that have been accumulating it all along, to begin.
Six months earnings are expected to be in the $3 to $4 Millions range, compared to $1.15 Million for the whole of 1998. For the whole of 1999, my estimate is a range of $9 to 10 Millions. I estimate that earnings of 32 cents per share for 1999 are quite feasible, giving a potential price range of $30.00 to $40.00 by end of 1999, using a PE of 100. PCNTF, in a comparable class has a PE of 200.
I should point out that the foregoing is the personal opinion of a biased long in the stock and that extensive Due Diligence is strongly advised.
Regards, F. Goelo + + + |
