I just posted the following on ESVS/Yahoo. For what it's worth, here's my read of what's happening.
Someone on SI just PM'd me and said that we could be witnessing a share buyback project in process.
For example, since insiders have the power to sell to depress the price (by selling shares that first came into existence back when Star Medical existed--i.e., very, very cheap shares), they make money selling on the way down because they're still selling for more than what they originally paid.
As the price gets lower and lower, due to folks frightened into selling thereby adding to the decline, the insiders begin buying back, knowing that they will increase due to future leading-edge technology, new client and business plan announcements that'll eventually take shape once the merger has been done and the new entity is perched safely onto Nasdaq. In effect, they end up with more shares this way.
For some reason, I don't think the intent here is to screw all those people who showed up at the New York Yacht Club one year ago to witness echoMEDIA's first-time demonstration of SesameAd, as written and described by Courtney Pulitzer. My theory is that those folks put up the original money and the return on their investment is not anticipated for two to three years down the road, not one year.
Myself? I'm just going to pretend that I was one of the folks at the yacht club marveling not only at the America's Cup, but SesameAd as well. That's my read on what's going down. Zulu, really is, as noted by Merklermedia, "Best in Class" due to its vertical integration which has not yet fully manifested throughout the industry due to the SIM into ZuluMedia rebuilding efforts.
ADDENDUM--I forgot to include this on my ESVS/Yahoo post. I just added it on in a second post:
I left something out:
SI_Bobz_PartyTime
(M/Cambridge MA)
Aug 11 1998
12:25PM EDT
The whole reason for doing this is to end up owning more shares than currently held, at
a cheaper price. In other words, sack a few of the cheap (Star Medical-type) shares
to get the price down, in order to buy more shares overall. In other words, increase
the inside take once everything is finalized and the merger done and the new entity on
its way.
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