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

To: CWIII who wrote (7320)	5/21/1998 3:47:00 PM
From: PartyTime	Read Replies (1) \| Respond to of 18444

Cliff, I knew there was somebody out there, with numbers, far beyond my figuring. For me, my bottom line is this: Publicly traded companies function to the maximum advantage of respective shareholders. To me, this means I won't get screwed in the conversion process when ESVS and Zulu formally merge. However, based on the trades today of 200, 300 and 400, I am aware of the fact that I'm being screwed right now. Our stock should be going upward, not downward or sideways. Guess who it is that's stopping our upward movement? You guessed, it's the money maker market maker!

To: CWIII who wrote (7320)	5/21/1998 11:12:00 PM
From: Jon Tara	Read Replies (2) \| Respond to of 18444

Thanks for dredging-up this post of Jeffrey's. This is exactly the post I was referring-to earlier, in reference to the conversion rate. 5 to 1, and even 10 to 1, are completely unrealistic. There are apx 50,000,000 shares of ZULU outstanding. There are apx 1.12M shares of ESVS outstanding. A ratio of about 44 to 1. They CAN'T DO a swap at a 5 to 1 ratio, because there aren't enough ESVS shares to issue to ZULU shareholders to do that. In order to do a stock swap and have the ratio come out to 5 to 1, ESVS would first have to issue a LOT of shares, probably resulting in a significant drop in value. As we get closer to any merger, either the price of ZULU has to go down, or the price of ESVS has to go up, until they are approximately in the ratio of 44 to 1. If only ZULU or ESVS moved, then ZULU would have to go to .14 (using $6 1/2 for the price of ESVS), or ESVS would have to go to 17 5/8 (using a price of .40 for ZULU). (Note that I've used favorable numbers in both cases.)