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

To: Sir Auric Goldfinger who wrote (7288)	4/6/2000 10:29:00 AM
From: StockDung	Respond to of 10354

By: frisky Reply To: 18797 by Frank_Ching Thursday, 6 Apr 2000 at 12:19 AM EDT Post # of 18807 Nobody has ever argued that OIA has not done a good job. The problem is that ZSUN must give the former OIA shareholders 2 shares of ZSUN for every dollar of earnings before interest, depreciation and income taxes that is above $2.5 million. After the former OIA shareholders exercise their options, the original shareholders will become the minority interest. The former OIA shareholders could own 65% or more of the total outstanding shares of ZSUN. The huge earnings dilution could cause ZSUN's 2000 EPS to be less than a nickel. At 15 PE, ZSUN is worth 75 cents. At 20 PE, ZSUN is worth $1.00. At 30 PE, ZSUN is worth $1.50. Remember, OIA's revenues will be possible more than 90% of ZSUN's total revenues in 2000. IMO, a prudent investor will not pay over 200 PE for an investment seminar company. ragingbull.com

To: Sir Auric Goldfinger who wrote (7288)	4/6/2000 10:33:00 AM
From: StockDung	Respond to of 10354

By: frisky Reply To: None Wednesday, 5 Apr 2000 at 10:31 PM EDT Post # of 18807 My last message 18781 was contaminated by RB Server. I am reposting the last message here. How many shares will ZSUN issue to the former OIA shareholders? ZSUN has not told us yet. I am doing my best to estimate the number. In ZSUN?s press release on March 20, 2000, ZSUN said OIA made $7,728,298 for January and February. Meaning, ZSUN must issue 15,556,596 more shares plus the additional earnings of March 2000. According to ZSUN?s 10qsb of 3quarter 1999, ZSUN had 27,042,518 outstanding as of September 30, 2000. According to the current 10ksb, ZSUN owes Allan Hardman 75,000 options to buy ZSUN at $2.50 per share. ZSUN owes 105,000 shares to a convertible note holder. ZSUN owes former OIA shareholders 15,391,668 shares (3,847,917*4) as of December 31, 1999 plus additional 15,556,596 shares as of February 29, 2000. The total shares outstanding could be 58,170,782 plus additional shares that will be exercisable on March 31, 2000. ZSUN total outstanding shares could reach 65 million shares. IMO, a stock price is determined by the future EPS. ZSUN?s diluted EPS in 2000 could be in the low single digit. After ZSUN reduced the holding of AFSI to 19%, it must classify AFSI as available for sale securities. No AFSI?s revenues or losses will be ZSUN?s income statement. I estimate that OIA will account for over 90% of ZSUN?s revenues in 2000. Since OIA is not an Internet company but an investment seminar company, it probably just deserves 15 to 20 PE. You can easily decide the fair price for ZSUN. ragingbull.com