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

To: Bob M. who wrote (13617)	9/9/1998 9:39:00 AM
From: aleta	Respond to of 18444

Bob, to be brief, there was a statement by the IR person, Mark Wachs, that news about the acquisition would be out shortly and that investors would be happy with that news. A day or two prior to the news being released the stock went up. When the news was released investors weren't happy. The stock went down.

To: Bob M. who wrote (13617)	9/9/1998 11:16:00 AM
From: BlueFox	Read Replies (1) \| Respond to of 18444

Can anyone give a reason or reasons that ZULU went from $.44 on 8/24 to $.14 on 9/8. On 8/24 it doubled in anticipation of final information about the ZULU/ESVS combination. There was an expectation of news that was going to make investors happy, but when the release came out the next day confirming the 10:1 conversion ration Mr. Hayton has hinted at in an earlier conversation, the price fell. The ESVS price at the time of the announcement was somewhere in the 2.30-2.50 range I believe, which at a 10:1 conversion valued the ZULU stock at .23-.25 cents. Investors buying at .44 were looking at a guaranteed loss unless ESVS doubled in value, thus the stock fell back to its original levels and has continued to slowly erode since then. BF

To: Bob M. who wrote (13617)	9/9/1998 12:30:00 PM
From: PartyTime	Read Replies (1) \| Respond to of 18444

Relative to your question, yes, that differential I think had more to do with perception than reality. We had closed the prior week anticipating merger news. The backdrop before that? Well, the veterans--not thread veterans, but those who appeared to have more stock investing experience--hinted that the conversion ratio would be 10 to one. But there were others who consistently said it would be as low as three to one. [NOTE--To my critics: See if you can find where I speculated on what the conversion ratio would be. In fact, I have only one post--shortly after the very first announcement that ZULU and ESVS would combine. Back then, I consulted someone with stock investing experience, who came up with numbers in the range of 1-4 and 1-8. Beyond that, I never speculated at all as to what the specific conversion number would be.] So the anticipation factor clearly played out. Everyone knew the news was coming, and likely no one wanted to miss a potential three to one bonanza. So I suspect this caused a lot of folks, including longtime Zulu watchers, to jump in. There was a lot of heavy buying on Monday, pushing the price from .17 to .44. I have to admit: I felt pretty good that day. It looked like we were finally putting our misery behind us. So the next day, sure enough, there's a news release announcing the deal at 10 to one. The disappointment among everyone--myself included--was severe. A lot of folks were angered by the result not being what was anticipated (i.e., a better than 10 to one) and thus the selling spree that brought Zulu back to where it is today. The bottom line? No financial numbers by which to make a fair judgment as to whether 10 to one was fair or not. So, in effect, we're still where we are today where we were back at the beginning of the year. We cannot shape a truly solid perspective without first seeing the audited report from Zulu. Once again, we're in an anticipation mode. We're expecting the final description of the deal, that it's inked and ready to move on to the shareholders and SEC for approvals. And the one thing that has to accompany any such signing is the Zulu audit. So I think we're finally nearing the end of this great mystery, and that by week's end there should be a clear picture of we're at. I pray for the day where there will only be gradual but steady rises in both Zulu/ESVS. It would have been nice yesterday to have gotten to that point. But today we are closer than ever before. My hope is that when this report is released and the deal is final, that many, if not all, of the great Zulu skeptics will wash away.