Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ken Martin who wrote (14001)	9/14/1998 1:53:00 PM
From: PartyTime	Read Replies (1) \| Respond to of 18444

I think they set the $30 million dollar value of Zulu's acquisition, with Zulu being worth $.58. No matter what the price is, we'll still be converting at a ratio of 10 to one. Market makers know this and are trading accordingly. Just a theory. But perhaps MMs feel that keeping the price down so low, more shares will be transacted and thus they can play the penny differential to their advantage by selling and buying for profit based on a higher volume.

To: Ken Martin who wrote (14001)	9/14/1998 2:23:00 PM
From: BlueFox	Read Replies (1) \| Respond to of 18444

the offer was for $30MM, and this would be split between Asset/Liabilities/Equity in Zulu, what does this have to do with the current price of ESVS or ZULU? The value of the transaction included 5.2MM shares of ESVS valued at 12MM on the day of the announcement. The transaction would be valued at less than $30MM today, since the $12MM stock portion of the transaction would now be valued at 7.15MM. The key point to note is that this isn't a cash deal, it's a stock transfer deal, so the value fluctuates with the value of the stock in the transaction.