ORLANDO, Fla., Feb. 3, 2010 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., has initiated coverage on ZST Digital Networks, Inc. (Nasdaq:ZSTN), a leading supplier of digital and optical network equipment and installation services to cable network operators in China’s Henan province.
Rick Grubbs, CFA, RedChip Research Analyst, reported:
“ZST enjoys a dominant position in market share for its principal product segment consisting of a line of Internet Protocol television (IPTV) devices. The Company’s new initiative, and a significant part of its growth strategy, is the launch of a commercial line of Global Positioning System (GPS) which is expected to generate gross margins significantly higher than the Company’s current margins.”
Grubbs continued: “Based on what we believe to be significant upside potential in the sales of GPS devices and services, the low cable penetration rates in Henan Province, and the currently undervalued stock price, we are initiating coverage of ZSTN with a Buy rating and a 12-month price target of $15.”
To receive a complimentary copy of the RedChip Visibility Initial Research Report for ZSTN, please visit: http://www.redchip.com/about/aboutmain.asp?rid=216">http://www.redchip.com/about/aboutmain.asp?rid=216
To learn more about ZST Digital Networks, Inc. visit http://www.redchip.com/visibility/investor.asp?symbol=ZSTN
About ZST Digital Networks, Inc.
ZST Digital Networks, Inc. (Nasdaq:ZSTN) is a China-based company, principally engaged in supplying digital and optical network equipment and providing installation services to cable system operators in China. The Company has developed a line of IPTV devices that are used to provide bundled cable television, Internet and telephone services to residential and commercial customers. The Company has assisted in the installation and construction of over 400 local cable networks in more than 90 municipal districts, counties, townships, and enterprises.
About RedChip Companies, Inc.
RedChip Companies is an international, small-cap research and financial public relations firm headquartered in Orlando, Florida with affiliate offices in Qingdao and Beijing, China; Paris, France; and Seoul, Korea. RedChip delivers concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including: RedChip Research™, Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Small-Cap TV™, Social Media Services, and RedChip Radio™. To learn more about RedChip's products and services please visit: http://www.redchip.com/visibility/productsandservices.asp.
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Disclosure
The analysts contributing to this report do not hold any shares of ZST Digital Networks, Inc. (“ZSTN”). RedChip certifies that no part of the analysts’ compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. The equity research report(s) are not a recommendation of a solicitation to purchase or sell any security, nor do they constitute investment advice. RedChip Companies, Inc., is currently engaged by ZSTN to provide investor awareness services. Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. These services may include investor conferences, digital and print distribution of ZSTN investor-related materials, investor road shows, and radio programming. ZSTN is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. ZSTN agreed to pay RedChip Visibility twenty-seven thousand dollars in cash for twelve months of RedChip Visibility Program services, which includes the preparation of the equity research report(s). ZSTN agreed to pay RedChip Companies, Inc. thirteen thousand shares of the Company’s common stock under Rule 144 for twelve months of these services. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein.