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Microcap & Penny Stocks : Zulu-tek, Inc. (ZULU) -- Ignore unavailable to you. Want to Upgrade?

To: slipnsip who wrote (2432)	3/2/1998 4:32:00 AM
From: BlackStar	Read Replies (1) \| Respond to of 18444

Okay, here goes. THIS IS PURE SPECULATION Sure, I can work with that... :) Lets look at this company from a purely cash basis. Based on what they told us (press releases) they have at least 20 (or was it 29?) million in cash funded in this BB shell (or had prior to softbank acquisition). 20 mil AFAIK. There is no way to verify this without financials. But if that was the case, on a purely cash basis, this company would be worth 30-50 cents per share. We've been down there for some time. Even below for periods of time, I think .17 being the absolute low. Leads me to beleive that the 30 mil to 42 mil float change is fairly recent (regarding your statement below about VC buyback). Thus ZULU would have effectively paid $15 million in stock and cash to buy Softbank. These numbers could be greatly skewed based on how much debt they acquired with the company. Bottom line on the "guessing" I vote for 12 million in stock and 10 million in cash to buy Softbank. Those figures feels resonable to me. Mind you, I'm not a numbers guy. Nevertheless it hints at there being some aquirement funds left should it become neccessary. You, sir, are an asset to this thread. Please don't leave. One last thought, this stock should not trade for less than what its cash is (providing no debt) aka "book value". If it were to trade for less than its "book value", then the original venture capitalist would buy all the shares back on the open market, and take it private. Then they would own 100% of the company and have the extra cash to boot. Knowing the business, do you regard it as a possibility that this could happen? Ie the VCs bringing down the NETZ price in some obscure way to take it off the public market? Does VCs operate like that or do they prefer to stay public? Please feel free to speculate.