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Microcap & Penny Stocks : Zia Sun(zsun) -- Ignore unavailable to you. Want to Upgrade?

To: Frank_Ching who wrote (7144)	3/28/2000 9:16:00 AM
From: StockDung	Respond to of 10354

Spirit of co-operation rules in Web business scmp.com Monday January 25 2000 Spirit of co-operation rules in Web business At first glance, there was nothing unusual about the Capital Growth Report when it arrived in Backspace's snail-mail box. Of equal parts financial jargon and hype, the report - which charges US$78 for a year's subscription to what appeared to be four badly laid-out pages per month - seemed a typical tech-stock newsletter. What made Backspace choke on his morning coffee was the pick of the month: an obscure public Internet company called ZiaSun Technologies. ZiaSun was known as Momentum Internet when it was based in Hong Kong. Three years ago, a magazine called The Dataphile revealed that Momentum was behind a stable of porn Web sites and phone chat lines that promised Bangkok Babes and China Dolls. Thousands of spam messages advertising these services were sent from Momentum's free e-mail service. While not admitting the spamming, Momentum and now ZiaSun president Anthony Tobin told Technology Post last year that the company no longer ran sex-related businesses. Instead, ZiaSun has latched on to other Web trends. It has an Asian search engine, a stock-trading portal, a financial news service, an advertising network and an auction site called AsiaForSale. It moved to San Diego in 1998 when it began trading over the counter in the US, while keeping most Web operations in Asia, mainly in Hong Kong and Manila. While the company claims to be profitable on modest revenues - $9 million in the second quarter last year - it has been criticised by day traders and investors in the US, who have tried to puncture those claims. Mr Tobin had ZiaSun respond by suing several day-trading and investment sites for alleged defamation. While ZiaSun likes to hype its Web sites - 45 press releases last year - it doesn't appear to be making much money. Most of ZiaSun's revenues came from two off-line subsidiaries, a Philippine-based printing business called Momentum Asia and a US learn-how-to-day-trade seminar which charges $3,995 a head, according to Mr Tobin. So Backspace was puzzled why the editor of Capital Growth Report would hold such an optimistic view of ZiaSun's prospects. 'The company has a dominant position in the exploding Asian Internet market . . . We expect that ZiaSun stock will soon be valued with that of profitable peers such as CMGI, now trading in the [US]$80 range.' A visit to Capital Growth's site (www.capitalg.com) shows it is designed and maintained by Momentum Internet and that Capital Growth offers ZiaSun's Swiftrade stock-trading service to subscribers. Isn't co-operation and alliance-building among Web companies heartening? scmp.com business.scmp.com.

To: Frank_Ching who wrote (7144)	3/28/2000 7:28:00 PM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 10354

Facts! Facts! Facts!"The pivotal question is what does the internet (ZSUN) and motorcycles (TMOT) have in common. Because they allegedly used similar channels to obtain their startup capital. Are you infering that Titan has done anything illegal." If this is the pivotal question, let me address it. 1. Bryant Cragun 2. Amber/International Asset Management/Pt. Dolok Permai 3. Touted in the Capital Growth Report (Amber's newsletter) 4. Veritas/Jordan Richard Assoc. 5. Jones, Jensen & Co (prior to PricewaterhouseCoopers) 6. Many of the same non-US shareholders 7. Customer/Supplier Relationship On the question of legality, let me say it once more: During the period September 1996 to February 1998 Titan issued a total of 5,333,333 shares(split-adjusted) under Regulation S. According to Form 10SB filed with the SEC by TMOT on 9/30/98, the total cash received for these shares amounts to $7,000,000, an average price of $1.3125 per share. However, investors were charged not $1.3125 but approximately $5.00 per share. Both invoices and circulars issued by the "foreign underwriter", International Asset Management, a "securities firm" with a network of offices in several countries and clients in Europe and the Far East, and Titan's Offering Memorandum substantiate this. What this in essence means is that investors paid $5.00 per share which they were led to believe would form part Titan's equity, but only $1.3125 found its way to the company. On a per share basis, $3.6875 ($5.00 - $1.3125) has fallen between the proverbial cracks. Applying this figure to the total shares issued yields an astounding amount of $19,666,665 ($3.6875 X 5,333,333) in undisclosed, unreported and illicit profits. The SEC has this to say about Regulation S abuses and off-shore scams sec.gov : "Under a rule known as Regulation S, companies do not have to register stock they sell outside the United States to foreign or "off-shore" investors. In the typical off-shore scam, an unscrupulous microcap company sells unregistered Reg S stock at a deep discount to fraudsters posing as foreign investors. These fraudsters then sell the stock to .. investors at inflated prices,pocketing huge profits which they share with the microcap company insiders." NASD Regulation lists various types of conduct which are prohibited. Specifically, with regard to markups NASD Regulation states that "charging a customer excessive markups, markdowns, or commissions on the purchase or sale of securities" is prohibited. To answer one of your previous questions on what bearing my comments have on the company, consider how much stronger TMOT would be today if it had an additional $20 million in cash or other assets. To this day, TMOT's non-US shareholders fail to realize that illicit profits of 300% or 400% were earned on their investments. messages.yahoo.com