Running WCAP to $65.00 was clearly overdone by the market...
and, of course, I sold before the top.
I believe ZSUN intends, as an option to raise additional cash, should it be needed, to spin off some of Internet divisions, when they reach maturity and full value. Their programming cost are so low in the Philippines, that they could make a very profitable business of doing just that.
The Seminar Company, which is complementary to the purely Internet properties is a great acquisition idea, because it provides a generous, up-scalable cash flow that is generally lacking in pure Internet related Companies that are recent start up.
In addition to cash flow, the Seminar Company is inter-dependent on the various ZSUN's Web site properties: it benefits from the advertising displayed there, while, at the same time feeding new customers on to Swiftrade and M Finance. It really is a very clever business model that, IMHO opinion, deserves the PE of 100.
The argument will be settled shortly when the first Quarter figures come out and investors realize that my 65 cents EPS estimate for 1999 might even be too conservative.
F. Goelo + + +
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