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


To: PartyTime who wrote (12133)8/15/1998 11:02:00 PM
From: Brady B.  Read Replies (1) | Respond to of 18444
 
Okay boys and girls.....

Let's try to look at this thing from a person who owns a majority/controlling stake in it.

1) How much can I make, in a salary sense, pre-meger vs post-merger?

a. It should be the same shouldn't it? I mean will control of the company change with a Nasdaq listing? No. The salary if it is a legitimate and legal can remain the same.

2) Will my access to funds be more difficult?

a. Access to funds will be under more scrutiny. But if everything is being conducted legitimately now there should not be a problem after the merger.

3) Would I be more apt to make a profit by selling my shares now or by waiting for the post merger/ipo of the new company.

a. The price of the stock will definitely increase after the merger. We all know that. It will increase because of its position on the Nasdaq.

3b) If the conversion is 10:1 will a post merger stock price still make up for any possible losses.

ba. Yes. This stock is currently in the .25 range. We all know that the post merger price will be at least the current esvs price which historically has been 10 times that of zulu. So selling now would not gain anything that waiting would not also gain.

4) Is the stock price going to rise without a merger?

a. No.

5) Is the prolonged length of time to carry out this merger due to complications that we, as laymen, know nothing about as far as mergers?

a. Let's hope so because the only other reason would be unscrupulous.

6) With all we know and all the facts we have (banners, associations with the top 5, top of the line executives, etc) is there any reason, ANY REASON, that the resulting company that we have been told to expect will not take off like a rocket?

a. No there is no reason to expect anything else. If what we have seen and what we have been led to expect is true, the resulting company should join the ranks of the elite as far as stock price goes.

6b) Is there anything that could prevent this stock from skyrocketing.

a. Yes. Unscrupulous and unethical business practices.

7) Does the SEC realize this?

a. I cannot see anything that would prevent the SEC from seeing the inevitable. Either Zulu/ESVS goes up or someone goes down.

CONCLUSION:

The only thing that could prevent this stock from taking off would be fraud on the part of management. The association between Zulu-tek and Enhanced Services has been in the works too long for any last minute misunderstandings as far as who will do what and who will get what. If the merger falls through now it is because it was planned that way.

Personally I still have no opinion on Hayton one way or the other. I do tend to lean at times though. I can't base my decision on him so I must go to the next step. Do I trust the executives that are running the company? To this I have to say yes. If they turn out to be involved in a fraudulent business deal their careers are ruined. I really don't think they would want to see that.

Therefore, I must maintain my position in Zulu/ESVS. Yes, I own stock in both companies. I said that before. I do not think it will make a difference which company you own shares in in the end though. Even if the conversion is 10:1 we will all be a lot better off than when we bought it. And a whole lot better off than we are now.

Unless you feel that fraud is taking place you should stay in. If you think fraud has occurred you should run as fast as you can and suffer your losses.

In other words there should be no bashers on the board. Just the curious and the yappers. Of course we will have to allow the occasional flare ups or this would be my last post.

bb