ECDC(0.055) EarthSearch to Enter Talks with ZST Digital Networks (ECDC, ZSTN)
By: staff reporter, John Bodger
Last Updated: May 6, 2011 - 12:56pm EST
(NEW YORK)--WSNC has confirmed directly from the company that EarthSearch Communication, traded under the name East Coast Diversified Corporation (OTC:ECDC), has signed a 'letter of interest' with ZST Digital Networks, Inc. (NASDAQ:ZSTN) to explore possible partnerships, joint ventures, or potential merger between both companies.
Although just an initial 'letter of interest', this would mark the first step for both companies to enter discussions for developing possible joint venture partnerships in the GPS and RFID field, or potential merger between both companies.
ZST Digital Networks, Inc. engages in supplying digital and optical network equipment and providing installation services to cable system operators in China, as well as in providing GPS location and tracking services to local logistics and transportation companies in China. The Company has also launched a commercial line of vehicle tracking devices utilizing its GPS tracking technologies and support services for transport-related enterprises to track, monitor, and optimize their businesses.
Any merger or joint partnership could be a win-win for both companies, as this would give ZSTN a broader portfolio of GPS and RFID products, let alone access to Earthsearch's growing international distribution sales network, but also provide ECDC with a more stable public partner on which to execute and expand their GPS and RFID related products and solutions.
This is only a 'letter of interest', and only just opens the door for both parties to begin talks and exploration, but the synergies between both parties show that a potential merger, or at the very least a joint partnership, could be a very positive development for both companies.
The Company is expected to file an 8K within the next day or so to reflect the signed letter of interest from both parties. Both parties are then expected to meet in China to explore possible ways both entities could work together regarding GPS and RFID solutions.
ZST Digital Discount Valuation
On another footnote, ZSTN reported their first quarter 2011 financial earnings on Thursday, which showed sharp % growth on all levels. On a quick look at the basic fundamentals one will see this company shows some real discounted valuation with a PE of just under 2, with a trailing twelve month EPS of $1.90, and a stock price of just $3.73 per share. The stock has shown in recent days a sharp move up as value investors swooped in to pick up shares from its recent drop, and based on their fundamentals, ZSTN may still have a lot more upside room from this level.
EarthSearch Communications, is a US-based business whose flagship product, LogiBoxx™, integrates GPS and RFID at the hardware level. When combined with its proprietary Global Asset Tracking and Identification System (GATIS) middleware, LogiBoxx and GATIS become the centerpieces of a LogiBoxx Certified Solution. An unprecedented business decision-making tool, a LogiBoxx Certified Solution offers continuous visibility within the Supply Chain, Logistics, and Asset Management and Control industries. Along with its integrated, patent-pending GPS and RFID technologies, EarthSearch also offers a complete line of innovative RFID solutions. Its expertise with GPS and RFID technologies, combined with exceptional support and service facilities, distinguishes EarthSearch as a leading manufacturer and supplier of real-time location solutions in the marketplace. For more information on EarthSearch, visit www.earthsearch.us.
News 
Market Data 
Discover 
