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Microcap & Penny Stocks : Zulu-tek, Inc. (ZULU)
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To: randmiser who wrote (7562)5/27/1998 7:35:00 AM
From: Brady B.  Read Replies (2) of 18444
 
You have to look at how John uses the word "net" in his statements. I think what he is saying is, just adding more shares to the float will not increase the value of the company.

But Jon neglected the residual effect that these new shares will have on the overall value of the company. ESVS will open at a new price this morning. It should be around 1/2 of the current value.

Now, for every penny, nickel or dime that price increases is equal to double the increase in price that would have occurred at the old float and old price.

In essence, if the price goes up .10 today, it would have had to go up twice that yesterday to be an equal value.

They are in the end, in theory, doubling their money.

Of course this can be looked at in different ways as I'm sure you will find out when the alarm clock goes off.

bb
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