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


To: Terry T. who wrote (7835)5/28/1998 7:36:00 PM
From: PartyTime  Read Replies (2) | Respond to of 18444
 
Terry, what you and Jon agree on seems to make sense. You have my acknowledgement. To all? Enjoy this while it lasts, because I think, by what I have to say below, I'm about to bust it up again.

Let's now consider this--I bet I can get you both on track so that you can disagree again. Let's, for purposes of this discussion say ESVS, because of what happened, will halve its share price to $2.50 to $3.00, and possibly even lower due to trading (Remember Zulu is now cheaper to buy and ESVS shares have the potential to buy more Zulu shares).

I suspect the company (combined) knows that its got news big enough still in the mill, that it will never ever be in danger of losing its coveted Nasdaq standing. I think this a safe assumption.

Jon Tara, however, was willing to consider ESVS could possibly lose its Nasdaq status because of the dilution in share price. But then he wisely pointed out, that by lowering its price, ESVS took itself out of the shorter's grasp. So he's now established a couple of different directions going here. Quite par for him.

If I'm correct--and I think I am--one of the ways (there are others too, under the new rules) a company could lose its Nasdaq listing is if the price slips below a dollar for x-number of days in a row. It's my bet Zulu doesn't even remotely believe this is gonna happen.

Why? My theory is that Zulu knows it has a blockbuster of an announcement up its sleeve and coming up. And ace in the hole, if you will. And that it also knows that this new announcement will tremendously skyrocket Zulu's share price.

The question we have yet to put out in the air is this one--and I think it is not a good one but a great one for us to consider: What if Zulu has an announcement that is so big, that has been kept so secret, that its share price will skyrocket beyond the continuing lowering price of ESVS? Were this to happen, ESVS would therefore gently come under Zulu's wing (remember the 80% ownership stake) and serve only lend its Nasdaq status into the pitter-patter of the wider market.

This would show Zulu's strength in such an extraordinary manner, that it would clearly mark a renewed signal for a determined run at Doubleclick?

This would be the equivalent of stealing home plate for the winning run in the bottom of the ninth, with two-out, in a tie game that was tied after coming several runs from behind in the bottom eighth inning.

I guess what I've presented is the best of all possible best-case scenarios for Zulu shareholders.

But I think we deserve no less than to also consider the best of all possible worlds. Particularly after all the suffering--yes, suffering--that we've been through over time for this stock.

Another theory accompanies this Big Bang theory: Perhaps what Zulu is intending to accomplish is potentially so big, that the opposition has enlisted the brilliant services and mastery of Jon Tara as a last-ditch effort to thwart the Zulu advent.

One thing I credit to Jon: He's been the loyal opposition all the way in this one.

Any thoughts on Zulu's possible move? Any thoughts on Tara?



To: Terry T. who wrote (7835)5/28/1998 10:25:00 PM
From: Jon Tara  Read Replies (3) | Respond to of 18444
 
Terry, the MARKET determines the price of the shares. Period.

But why would the market suddenly decided that the shares are worth twice as much? Oh, it happens, but usually due to some (extremally stupendous) news.

Nobody "sets" the price of the shares. The shares are worth what buyers are willing to pay and what sellers are willing to sell for.

If the shares do NOT halve in value, we can only come to one conclusion: there is NO public float in ESVS, and the price is being artificially-maintained by the shareholders, in collusion with the market-makers. (Since there ARE shares traded every day, which should evidence a public float.)

I am confident that the price will drop roughly in half in the morning. The market-makers will set their initial bids/offers at that value in the morning before the open.