I liked you last question, Brady.
In any event, here's Donald Steinmann's response on the conversion question. In effect, he brought us back to where we are with no conversion response. Maybe someone else should have a go at it with him. Or maybe there just isn't any clear answer yet. Oh well, this is what he said:
Do you remember when you were a kid and it would make you so made whenÿ
someone would tell you something and then say "ha ha, had my fingers
crossed".ÿ As adults we have to give up that kind of foolishness.ÿ
Except of course in press releases.ÿ The $50 million placement you
mentioned is what they *hope* to do, not at all a done deal (ha ha hadÿ
our fingers crossed).ÿ ESVS has declining sales and revenues.ÿ Since
Zulu-tek doesn't file audited financials, we have no clue as to what
they actual earnings are, but I doubt it's anywhere near what they
claim.ÿ I'll bet that $39 million has all sorts of caveats built into
it, maybe it's projections based on long term contracts (ha ha, had our
fingers crossed).
The company may indeed be able to make some serious bucks, but right now
you are flying somewhat blind.ÿ You have no idea how much cash they
have, what their revenues are, profits are, etc.
But at .50 cents a share, you knew it was a really, really speculativeÿ
investment.ÿ I'd call investor relations at Zulu-tek and ask for answers
to these questions:
What is their current cash position.
What is their current debt.
What are accounts receivables that are due in 30 days and what wereÿ ÿÿ
receivables like the last few months?
What is the pay of the top couple of officers?
What assets do they own other than cash and what is it worth?
This will at least give you some idea of where they stand.ÿ If it's
such a great business, receivables should be exploding.ÿ They also
should have some cash on hand and salaries for execs shouldn't be off
the planet.ÿ Also make sure they don't have current debt due that
can bankrupt the company.
Without financials it's almost impossible to figure out what's up.ÿ You
have to just go on the say so of people who cross their fingers.
Take care.ÿ Don. |
