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

To: Terry T. who wrote (11456)	7/27/1998 2:22:00 PM
From: Rajeev Mohnot	Read Replies (2) \| Respond to of 18444

ESVS (real time) bid 2 7/8 ask 3 1/16. What is going on?

To: Terry T. who wrote (11456)	7/27/1998 6:34:00 PM
From: Terry T.	Read Replies (1) \| Respond to of 18444

I had first chance, today, to look at ESVS quarterly filing. ROFLMAO!! There is not one single future business opportunity, or ray of hope, expressly or indirectly mentioned that is not directly contingent upon closing of the deal with ZULU. Query what ZULU is getting out of deal, in light of protracted effort to consummate business combination, and lack of private placement funding to date? The 2 reasons to pursue ESVS, (i) capital and (ii) easy access to a shell to effect reverse merger, have not been realized, nor is there any indication of an early resolution of these 2 "benefits" of dealing with ESVS. Can any one help with this: ESVS identifies "address of principal executive offices" as the El Segundo address for ZULU, but then later on identifies a consolidation of offices in Irvine, CA. Does that mean that only ESVS management is sharing offices at ZULU's offices. If so, what operations (if any) really exist in Irvine? I note it interesting that report states that the 2 identities of the companies have been maintained, pending business combination. If this is so, then this is all the more reason for Zulu-Tek and Zulumedia to command a better exchange rate upon merger.This means that all the "goodies" are still in Zulumedia's control, and what Mincheff describes as "explosive" revenue growth is occurring within Zulu-tek, and Zulumedia, not ESVS. Question for day: how would one evaluate value of advertising concern such as Zulumedia? How do you factor in the huge potential, with that "explosive" growth admitted by management? I had airline case in past, and had nationally known experts opine on value of a commuter airline business. Apparently, airline industry uses a multiple of revenue, i.e. 1x or higher the annual revenues.irrespective of a longstanding net loss history, because of the value of the infrastructure, client/customer base, etc. Here, with a burgeoning internet market and business, a revenue valuation approach would have to be higher than 1, but how much higher? If you used 2x revenue (conservative), and assume (hypothetically) that Zulumedia was now generating $4mm this month, on an annualized basis (i.e. July revenue x 12) that results in $48mm expected revenue, and a projected value of $96mm (2x annualized revenue). That would result in about $2 per share, using what I believe to be a conservative approach, for Zulu-tek, which would have to be worked into the relative stock values for upcoming merger/combination. If you used revenue approach for ESVS, its value (using same 2x multiple) would be what - $2mm? Now, if ESVS has a value of $2mm and ZULU has value of $96mm, using these admittedly arbitrary numbers and concept, guess which company should do better in a stock exchange, even if ZULU has 20x as much stock outstanding? Hmmmmmmmmmmmmmmmmmmmm.................. JMHO.