It is almost a regular practice of ZSTN and its investor relation company to time the promotions for the stock exactly as some important corporate events take place, in order to either enhance the positive reaction of the market, or to offset the impact of a possible negative reaction of investors. Thus, yesterday’s next disclosure about a stock promotion for the stock can hardly be surprising.
ZSTN is still paying a monthly fee of $27,000 for the favorable coverage of its stock. The division of the engaged IR firm that provides pro-active investor awareness services, like sending newsletters and alerts, and that has in addition received 13,000 restricted shares of the company, seemed to have been activated again yesterday.
The corresponding press release a day after the annual shareholder meeting on Monday was that ZSTN Board of Directors has authorized a share repurchase program. That issue was previously not mentioned among the issues standing for approval at the meeting. Under the share repurchase program, the company may buy shares of its common stock in the open market from time to time, in the discretion of the management and according to the market conditions.
Although the program resembles a reverse stock split as the acquired shares will have to be retired or canceled upon repurchase, the combined effect from that announcement and from the stock promotion was positive. The value of ZSTN stock increased by 5.92% and the closing price was $6.26. Thus, the achieved after the filing of the second quarter results high levels can still be kept.
Two weeks ago, ZSTN announced its financials for the three months ended this June. As compared to the same period last year:
- Total revenues increased by 40%
- Cost of revenues increased insubstantially
- Net income doubled
Also, during the first half of the year the cash flow from operations got positive and increased from ($960,000) to $3.6 million. Like yesterday, the nearly 30% jump of the share price on that incredible results was also supported by the same stock promoters.
