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Microcap & Penny Stocks : AFSI Asia4Sale: When is an IPO not an IPO?

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To: Sir Auric Goldfinger who wrote (4)3/13/2000 3:23:00 PM
From: Sir Auric Goldfinger  Read Replies (2) of 13
AFSI valuation calcs:

By: frisky
Reply To: 18074 by onewhoknows Friday, 10 Mar 2000 at 6:51 PM EST
Post # of 18078

You cannot judge AFSI's value by its market capitalization. When Inc. (AFSI) acquired Ltd., it issued 9,000,000 shares for the assets that ZSUN people valued them at $7.1 million
($5million /.70=$7.14 million) Because AFSI is not a reporting entity yet, I have no idea that how may
shares of AFSI was kept by AFSI?s former shareholders. I don?t know who are them either. However, in
the past, the acquiring companies typically keep 30% of the acquired companies? shares. Therefore, AFSI
might have more than 13 million shares outstanding. AFSI?s market cap could be an astonishing $130
million. With only a few shares traded every day, this figure is very misleading. IMO, the bubble is waiting to
be burst.

This is another clever reverse-merger deal made by ZSUN?s backers, again and again. As long as the supply
of suckers is unlimited, you will see the same kind of deals springing up again and again.

The uniformed foreign investors who participated in IVC deal received 9 restricted shares of AFSI for each
share of Ltd. (9 million shares of AFSI/1 million shares of Ltd.) Although the
shares are restricted for one year, they may be happy to see their $7.14 per share investment is now
ballooned to $90 on paper. Of course, we don?t know what will happen by Feb. 10, 2001. We don?t know
whether the liquidity will be a problem.

ZSUN has received the sure profit of $5,000,000 and probably 2.7 million restricted shares of AFSI. It ain?t
too bad.

Does this clever deal change the fundamentals of Not at all, AFSI is still a money-losing
business. However, ZSUN may be able to brush away heavy losses out of its book, if the
percentage of ownership in AFSI is less than 20%. The reason is that the equity method of accounting will
not apply anymore. The EPS can be significantly dressed up. ZSUN may value the investment in AFSI as
either a trading or an available-for-sale security at a fair market price of $27 million.Their balance sheet
suddenly looks very nice.

We will all find out when ZSUN announces the 4th quarter of 1999 EPS and 1st quarter of 2000 EPS.
These people are really "smart."
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