Fireside chat (stocks)

[mithrandir]

•SYTE – Updated, Clear Concise Info...

•Recent NEWS:
**Sitestar Posts Profits in Second Quarter '05
Wednesday August 3, 4:38 pm ET LYNCHBURG, Va.--(BUSINESS WIRE)--Aug. 3, 2005--Sitestar Corporation (OTCBB: SYTE - News), an Internet Service Provider (ISP) and computer services company, today announced that profits were posted for the quarter ended June 30, 2005. The Company earned a net profit of $155,743 for the second quarter of 2005 and $227,810 for the six months ended June 30, 2005. This marks the fourth consecutive profitable quarter for Sitestar.
**Sitestar to Double its Revenues
Tuesday August 2, 2:07 pm ET, LYNCHBURG, Va.--(BUSINESS WIRE)--Aug. 2, 2005--Sitestar Corporation (OTCBB: SYTE - News), an Internet Service Provider (ISP) and computer services company, today announced it has entered into a letter of intent to acquire a western United States company's Internet assets and mostly residential customer base. This company has over 11,000 accounts consisting of dial-up access, Digital Subscriber Line (DSL) access, wireless access, web hosting, web acceleration and other services.

•Profitable -4 straight quarters, first half 05 and for the full yr 2004:
”We have increased net profits in each of the last four consecutive quarters and, in fact, more than doubled our earning over the first quarter of this year," says Daniel Judd, CFO for Sitestar. "I think this demonstrates our ability to streamline our costs and make money in this business. As we acquire more companies and customers, we obtain greater economies of scale, better net profits, greater market penetration and increased customer service."
In addition to increasing profits again for the second quarter 2005, Sitestar also increased EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) over 180.0 percent from $188,173 for the six months ended June 30, 2004 to $526,969 for the same period in 2005. EBITDA is a commonly used for evaluating a company's operating profitability before non-operating expenses. Income from Operations increased from $4,668 for the first two quarters in 2004 to $312,394 for the same period in 2005.

•Reducing Shares:
Sitestar Corporation Cancels 20% of Its Issued Shares, Wednesday, December 01, 2004, 3:27 PM - BusinessWire. Reduced more shares since this PR – and more coming. Here’s the proof on reductions: Shares out as of 3/04 = 105 mil, shares out as of 3/05 = 82 mil, therefore, = 23 mil share reduction over last year. CEO states 6 million shares in treasury targeted for cancellation – which will bring outstanding shares to 76 mil.

•Current Outstanding Shares: 82,013,305 --- Restricted: 31,037,107 --- Float: 50,976,198. Numbers per TA.

•Recently rid itself of CD: Sitestar Pays off Ex-Convertible Debenture Holders, Monday, February 28, 2005, 11:21 AM - BusinessWire.

•Top Managers speak out in 5/16/05 PR:
Frank R. Erhartic, Jr., CEO of Sitestar Corporation, commented, "We have once again shown that we can be profitable. Our plans have proven to be sound and have kept us on track for profitability. It looks like 2005 will be the best year yet for Sitestar."
"The tree we planted has grown and is bearing fruit," says Daniel Judd, CFO for Sitestar. "I am confident in our abilities to grow this business and add net worth. The acquisitions we made in 2004 have generated additional revenues and through consolidation we have been able to transfer that to the bottom line.This is just the beginning; there are even more exciting things down the road."

•History of Acquisitions and more to come in future - from 10K:
Strategic Relationships and Acquisitions. The Company has many strategic relationships that allow it to expand its products and services to a wider range of customers. The Company intends to enter into more relationships like these. The company has acquired several companies, assets and customer bases over the last several years and intends to continue to seek out other opportunities that help its business grow.
*Recent Acquisition:
Sitestar Corporation Partners with Virginia Beach Internet Service Pro, Tuesday, November 23, 2004, 1:36 PM - PrimeZone. (Note no new shares issued to pay for acquisition, used cash and payments from operations.)

•Strong Balance sheet – cash flow positive and positive shareholder equity of $181,885.

•Key CEO Quotes from 5/31/05 online shareholder chat:

* "As you can see we have made good progress and should be on track for good profitability this year."

* "We are currently working on a number of acquisitions for 2005 which, if they go through, should dwarf the amount of new customers we acquired in 2004. Some of these prospects are even much larger than we currently are."

* "Sitestar’s goals for the next 12 months are:
1. To increase our customer base to over 100,000
2. To increase our revenues and our net profits substantially
3. To continue mergers and acquisitions
4. To pay down much of our existing debt
5. To raise additional capital for larger acquisitions
6. To introduce new products for broadband customers
7. To become a nationally recognized Internet Service Provider
8. To greater expand our markets and coverage area
9. To provide better customer support and customer satisfaction
10. To increase stockholder equity
11. To increase the awareness of our company and stock "

* "We will also be introducing products that will work over broadband like VOIP, backup services and a backup dialup connection. "

* ”We will be doing VOIP this year. That is the plan."

* "We may enter an agreement in the future for working with another company on providing broadband. Some broadband will be picked up in acquisitions.”

* "There are about 6 million (shares) in treasury…the plan is to eventually cancel them. "

•CEO = Frank Erhartic, Jr. has founded own company and has degrees in both Management and Finance - arguably the two most important subjects to grow a business. Has shown himself to be knowledgeable, honest and forthcoming – oh so, unfortunately, rare.

•The Big No’s: No convertible debentures, No S-8’s, No preferred stock issued. No need for financing to support existing operations through share dilution or otherwise - cash flow sufficient to support operations. No R/S per CEO. No share dilution used for last few acquisitions. No outrageously high salaries for CEO and counterparts.

•Sitestar Corporation is a mid-Atlantic Internet Service Provider (ISP) and computer services company offering a broad range of services to business and residential customers. Sitestar's main customer base is primarily in the Virginia and North Carolina markets but also sells most of its services nationwide. Sitestar's wholly owned subsidiaries provide narrow and broadband Internet access, Web-hosting and design services, computer sales and repair and other technology-related solutions to its residential and business customers.