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


To: Jon Tara who wrote (7284)5/21/1998 11:42:00 AM
From: Fredman  Read Replies (2) | Respond to of 18444
 
Can we all meet as a supporting act to a WWF wrestling meet ?? I think it would be hilarious. oh, one other thing: 'Tastes Great' OR 'Less Filling' ??? Jon, some people are chasing 'the pie in the sky', and some just flat made a mistake, and some were just badly misled into believing something or someone they should not have.
Standard stock market 'dog and pony show' applies to the 'merger', as far as i (we?) can see........



To: Jon Tara who wrote (7284)5/21/1998 12:12:00 PM
From: Jon Tara  Read Replies (1) | Respond to of 18444
 
Some further clarificantion on the relative values of ESVS and ZULU:

Nobody "sets" the ratio in the stock swap. A merger is just that. The number of shares of ESVS you will get for each share of Zulu-Tek if the companies merge is an easy formula:

n = E/Z

Where E = # of shares of Enhanced
Z = # of shares of Zulu-Tek

(With possibly an adjustment based on warrants outstanding and covertable debt.)

This won't change, unless one or the other company issues stock, which, of course, will affect valuation.

There have been naive comments here from time-to-time asking if ZULU holders will get 1 share of ESVS for each share of ZULU. How could they? There aren't that many shares of ESVS. Sure, they could issue enough shares to do this, but then that would devalue ESVS so that the net effect would be the same.

Do the math. You'll see why ZULU is dropping.

The ideal trade is, of course, a spread of short ZULU, long ESVS. But we can't do that, because we can't short ZULU.

For ZULU to stay where it is, ESVS must go up.
For ZULU to go up, ESVS must go up a lot.
If ESVS stays put, ZULU must drop.
If ESVS drops, ZULU must drop a lot.




To: Jon Tara who wrote (7284)5/21/1998 12:47:00 PM
From: PartyTime  Read Replies (1) | Respond to of 18444
 
Once again, you're planting seeds of doubt on a windy day. For what you're saying, it won't matter if these seeds get planted firmly in the ground, 'cause the winds will spread 'em about where they're bound to catch somewhere and grow wildly.

No, we have not bought the wrong stock. And it's not unusual that there is no ESVS thread on SI, just as there is no Zulu thread on Yahoo. Why be redundant? If something's covered, it's covered.

Whatever the ratio upon the merger, it still adds up to a Nasdaq listing, with bluechip clients and cutting edge technology moving forward.

The empty shell rumor won't hold either. This company is a developing company and will mature accordingly. Once components from both ESVS and Zulu have come into one entity, we'll see a considerably stronger company and one that will be very, very competitive.