Veritas: More SEC mandated buy back and contingent liablities! How many shares will the need to buy back udner taht deal?
Gee, between these two deals, we're talking a serious redution of book value and cash. Perhaps a $1 million? Mr Burns, calculation, please.
I don't think it's worth doing the numbers on. As far as them breaking the law, surely they were smart enough to not do this and have just not updated their webpage. If not then assuming April and May, that will be 10k shares they will have to buy back. Except, since they're so in bed with each other they're bound to have nice payment terms, so they may not have ever delivered any of those shares, thus again, none to buy back.
Assuming Veritas has been on the dole all year they gave away 15k shares in the first quarter. Those are on the books under unrealized crap or something for $5 a share, again assuming that all of that item is ZSUN shares. That's 25k a month in play ZSUN share money Veritas got a month, I wonder how much real cash they'll pay with? My guess is very little, slip them some shares offshore and go on.
The big question is when did they book the 50k shares to IBCHANNEL. At the end of the first quarter, 3-31, ZSUN closed at $24.75. If they gave the 50,000 shares before then they would only go off the books at $5/share = $250k. My bet is sometime after March 31, and before the April 8 SEC deadline is when they did it. This way they could mark the shares up on the books by $19.75, fooling marketing majors like Francoise into thinking they had a whizbang quarter, then give them to IBCHANNEL. Of course that would mean they paid IBCHANNEL $1.23 million. This I somehow doubt, but it's how much will come off the books in the second quarter. In addition anywhere below $12.375 that this pig finishes this quarter and they'll have more marking down to do.
Finally you have the OIA acqusition to account for. Again this was announced April 8, so it won't show until the second quarter is up and audited. So roughly the next millenium. This is a company that claims to be growing at an exponential rate and will have revenues of 15 million this year, with 2 mil in profit. If this is to be believed then you can bet that ZSUN would have to pay a pretty penny for such an operation. Where did the money come from? You don't sell a profitable fast growing business for a small multiple, but let's be generous and say $10 million, that's 5 times forward earnings. Where does ZSUN, with only $4million in questionable assets get the money?
Simple, they don't. They paid much less than that, how much we won't know until the second quarter numbers are shown, again, around the 12th of never. Why would OIA owners sell off their rapidly growing profitable company to a pipsqueek like ZSUN for a pittance. Simple. They wouldn't. Unless of course it's not quite as profitable as claimed. Again we won't begin to know until we see some filed financials for the second quarter.
That's D-Day for the longs in this stock. As soon as they have to show all the numbers for the second quarter, IT'S OVER. Of course before then they'll get to post first quarter numbers wildly inflated by the share price, bringing in a fresh wave of suckers for them to unload their insider shares on.
Tick-tock-tick-tock
Ticking away the moments that make up a dull day
You fritter and waste the hours in an off hand way.
Mr. Burns |
