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

To: Bullhorn who wrote (7535)	5/26/1998 10:07:00 PM
From: Jon Tara	Respond to of 18444

Arrogance is making pronouncements about how the ESVS split is going to effect NETZ, when the people making those pronoucements don't even understand the basic mechanics of a stock split...

To: Bullhorn who wrote (7535)	5/26/1998 10:14:00 PM
From: PartyTime	Respond to of 18444

Whatever the case, Jon's on a roll tonight. I think he invigorated the dialogue and has intentfully not come in as a distractionist, as I had labelled him earlier. I appreciate his assessments this evening, and I admit that from time to time we all, I guess, have a bit of arrogance within us. My problem is my mirror still has that damn beard I want to shave off, but won't till my portfolio gets out of the red! In any event, here's my rookie conclusions on what's happening: This is my read on what's happened to date. Please do correct me where and if I'm wrong. You've got to look at it this way. ESVS, although it currently holds the Nasdaq status, as a company itself will be merged into the Zulu name domain. There is a wonderful game of leapfrog taking place. Zulu has come from the OTC shell Star Medical which was renamed Netmaster and began trading in the open market very cheaply. As acquisitions continued and the focus of the company became increasingly clear, it set its sights on a Nasdaq listing. ESVS, except for the function of its operating components (i.e., NB Digital and Laptop Solutions), was not in good financial standing. For purposes of discussion, let's say it was like Star Medical, but in far better shape. So now Zulu, in effect, is about to gobble up (it effectively already has via the private placement/stock swap) ESVS. So it makes quite a bit of sense that the shareholders of ESVS are to be rewarded. They did good. Real good. So now, because of the double value of ESVS shares will come the profit-taking pressure to sell them. This process, I believe, will drive the ESVS price downward. Meanwhile, Zulu--which should have been trading higher on its own merit (wham-bam-thank-you-Wired) still has some play in what it will do prior to the formal merger. I've heard talk of two companies (MyTel and MyYellowPages) on stock threads that haven't been formally announced. So perhaps there's another acquisition or strategic partnership in the mill somewhere. And who knows, maybe there's other stuff out there that we don't yet know about. Consequently, any announcements of this order could help boost the Zulu price. Also, new hiring announcements are a possibility. But the big news, the thing that will really drive the price of Zulu upward--replete with the anticipation factor of enormous proportion--is the public release of the audit. The impact will have to be phenomenal if the earlier projected '97 revenues become confirmed. So this, too, should boost the Zulu price way up. So with the decline of ESVS, which seems to be shelling out like Star Medical did, and with the rise of the Zulu price, should come a fair medium conversion ratio for when the two companies formally become one. At this point, like the ESVS shareholders, Zulu shareholders will be rewarded. I hope I'm correct here. But remember, I've only been at this just under a year and have never before been involved in anything like this. So I stand to be corrected, should such be the case.