Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (56028)	5/10/2000 10:32:00 PM
From: Das Boot	Respond to of 122087

LOL, You make me feel SO OLD!!! Aufwiedersehen, Das

To: Anthony@Pacific who wrote (56028)	5/11/2000 8:56:00 AM
From: StockDung	Respond to of 122087

The much-hyped profitability of ZSUNE appears to be in jeopardy. From the most recent version of the 10SB (No. 6 for those that are counting): "In accordance with the terms of the acquisition agreement for OIA the former shareholders of OIA are to receive 1 share of the Company's common stock for each $0.50 of earnings before interest, income taxes, depreciation, and amortization for the year from April 1, 1999 through March 31, 2000. OIA's earnings as defined above were $10,910,076. Accordingly, the Company would owe 21,820,152 shares of its common stock at March 31, 2000. The value of the shares at March 31, 2000 was approximately $250,000,000. This value would be added to the goodwill on the balance sheet of the Company. The Company is attempting to renegotiate the terms of the transaction to issue less shares for additional cash consideration. However, no agreement has been reached at the date of this audit report". ZSUNE currently amortizes goodwill over 10 years (Note 2s). If the deal goes through as initially structured and assuming that ZSUNE will amortize the OIA goodwill over 10 years, the annual charge is $25,000,000. That's right 25 million! To put this figure into perspective, ZSUNE reported total revenues of $27,220,240 and net income of $5,979,675 for 1999.

To: Anthony@Pacific who wrote (56028)	5/11/2000 11:38:00 AM
From: StockDung	Read Replies (1) \| Respond to of 122087

Nasdaq May Drop K-Tel Listing .c The Associated Press PLYMOUTH, Minn. (AP) - Music retailer K-tel International may be delisted from the Nasdaq Stock Market because it doesn't meet certain minimum requirements. The Plymouth-based company has until May 22 to develop a plan for getting back into compliance, company spokesman Steven Kahn said Wednesday. The company no longer meets the minimum $50 million market capitalization or total assets and total revenue requirements for continued listing on the Nasdaq Stock Market. Market capitalization is the stock price multiplied by the number of shares outstanding. Kahn said the news doesn't mean the company is in financial trouble. ``Basically, our stock needs to trade at about $5 a share to meet the $50 million market cap,'' he said. On Wednesday, shares fell $1.75 to $2.25 in trading at 4 p.m. on the Nasdaq Stock Market, well off its 52-week high of $11.75. K-tel might consider raising capital through a private placement by selling shares to a limited number of investors, Kahn said. Two years ago, the company also faced delisting when it fell below the requirement of having $4 million in net tangible assets. Kahn said that when the company appealed, it met the listing standards and was allowed to continue trading. ``It's something that we're concerned about,'' Kahn said. ``We certainly want to continue to trade on the Nasdaq market.'' K-tel markets and distributes entertainment and consumer products worldwide. On the Net: K-tel: ktel.com. AP-NY-05-10-00 1814EDT