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

To: JAC who wrote (7828)	5/28/1998 5:33:00 PM
From: PartyTime	Read Replies (2) \| Respond to of 18444

At this point, there seem to be two camps. One camp thinks ESVS will be half its value; the other camp thinks it will maintain its value but double its volume of shares in the float. Generally, it seems to me that the first camp seems to make the more sense, if Zulu shareholders are to receive a better ratio of shares from the conversion. However, when you factor in what just happened regarding NetVest's sale of interest of both companies to China International Equities (CIE), Ltd., and since the vast majority of ESVS shares were insider-owned (i.e., NetVest et. al.), it wouldn't surprise me if the shares just doubled and that the value of them remained the same. This, in effect, would have made NetVest's sale more attractive and less costly for CIE, since the sellers would have gotten much of their capitalization from the value of their ESVS shares, now doubled within their possession. I would hope, for Zulu shareholders' sakes, that the first camp is correct, since in the conversion Zulu holders would get more ESVS shares. However, if it's thought that Zulu will rise also--due to release of the financials, announcement of a major customer, positive news of the private placement or a significant acquisition--then it could be possible that the second camp's thinking might prevail. The thinking here would be that Zulu will rise to a reasonable conversion point to ESVS and that therefore the rate of conversion of Zulu holders will be fair and good. But since in the combination formula where Zulu owns 80% of the resulting entity, I'm confused as to what the calculated value of share combined Zulu/ESVS share ownership will or could be. I don't think I've answered your question. I haven't answered it for myself. But I think I've at least presented two scenarios as to what might possibly happen. The result of either still leaves me completely confused. Speaking of yachting, it looks like we're sailing a boat of confusion on a sea of uncertainty. Can anybody really chart a course for this? I can't. It's beyond my ken!