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


To: CUNNINGHAM who wrote (7514)5/26/1998 6:54:00 PM
From: Terry T.  Read Replies (1) | Respond to of 18444
 
I believe ESVS' number of shares doubles, and its price drops in half, with a 1 for 1 stock dividend. Thus if one had 10 shares of ESVS worth $6 each, theoretically that person now has 20 shares worth $3 each.

Is this good, bad or indifferent for ZULU and ESVS, in the long run (versus short term reactions by investors)? I am reluctant to put a spin on it - everyone will have a different opinion about it - except to note that, in light of the press releases since early May, there appears to be a very deliberate, logical evolution of a "planned" merger or combination in the works. What remains to be seen is what the final financial and merger numbers will be, and in whose favor.

Why the financials are being held back and why the details of the merger/combination are being held back, is any one's guess, although I personally believe that insiders control such a high percentage of the stock in both companies that the little guys like us are not that important, and there must have been a decision that there is more to lose than gain by releasing numbers/information prematurely, just to provide "cold comfort" for us.