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

To: Brady B. who wrote (16262)	11/26/1998 10:39:00 AM
From: BlueFox	Read Replies (1) \| Respond to of 18444

It is fairly plain as to where NASDAQ is coming from. A quick review of the Aug 31 numbers shows: a) 2.3MM as "inter-company receivables" - yet ZULU couldn't pay this though - it's obvious from the statements - so that's worthless. b) "Investment in Zulu-tek" as 4MM. Today this is worth maybe 1.4MM (.12 * 56MM shares * 23% ownership). A quick revised total assets = 2.7MM. Current liabilities at the time were 2.14MM. Leaves assets a little below the 2MM mark. For the combined entity, they're valuing the goodwill on ZULU at about 17MM (which is awfully high). Shareholders equity is ~4.5MM (based on the stock prices of the summer). So for the combined entity, the net tangible assets number is -12.5MM - still a little short of the 2MM mark. Time to hire the accounting firm of Dewey, Cheetam, and Howe if they plan on fixing these numbers. BF