ZST Digital Networks: Deceptive Business, Bad Investment

They are not initial public offerings but given the long absence of two issuers from the markets the deals have the feel of an IPO. Over the past week, two companies not known for raising equity capital have approached the markets and raised relatively large sized deals.

Ben Axler submits:Last month ZST Digital Networks (ZSTN) reported its Q3 results. Yet again, the company reported glowing results, indicating that total revenue for the period was $38.5 million, an increase of 34.6% compared to Q3 ’09, and net income grew to $6.4 million, an increase of 94.7% compared to Q3 ’09.

By Adam Gefvert:Yesterday, AER Advisors, in tandem with wine mogul Peter Deutsch, released an SC 13D filing for ZST Digital Networks (ZSTN). They are continuing to accumulate shares as I predicted they would here.

By Adam Gefvert:Through using the mosaic theory, I had created the hypothesis that China Medical Technologies (CMEDY.PK) and ZST Digital Networks (ZSTN) are in the process of being taken off the US exchanges and taken private.

Chimin Sang submits: In my previous Seeking Alpha articles (here and here), I challenged that ZST Digital Networks (ZSTN) provided false representation of its busin

Chinese Company Analyst submits:Last week, Orient Paper (ONP) announced it would retain Loeb & Loeb to conduct an independent investigation into the issues raised by Muddy Waters LLC.

Chimin Sang submits: <<< Click here for Part 1

ZST Digital Networks, Inc. (ZSTN) is a dirt cheap Chinese stock, trading at just 3.8x forward estimates. ZST Digital Networks supplies digital and optical network equipment to cable system operators in China.