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

To: Terry T. who wrote (17057)	12/19/1998 2:50:00 PM
From: PartyTime	Read Replies (2) \| Respond to of 18444

Terry, I can't come to that conclusion. Those were significant commitments to buy both echoMEDIA and Softbank Interactive Marketing. And if you consider where the industry was at that that time, they were excellent decisions. And it also makes sense that the company today move into the ecommerce arena, for that timing too is ripe. My theory is Netvest, with both Pat Hayton and Neil Miller in the lead, realized based on unforeseen SIM complications--particularly in light of all the ex-SIMer-induced bad press--that a leapfrog onto Nasdaq would help reduce the credibility problem resulting from that bad press. I think they also realized there was a need for additional funding and that the original money would prove insufficient. Thus, Netvest turned to Richard Duckman and Ralph LaBarge, principles of ESVS. Through this relationship, also came a potential for the additional funding needed together with a Nasdaq listing. In retrospect, this appears as a prudent move. I think it's a reasonable supposition that Zulu-tek's financial bleeding had to stop, coupled with a need for new money in order to accomplish the original business objective. So why all the cutbacks? The company terminated employment of SIMers it felt were responsible for SIM's largescale debt creation (which caused Softbank Holding to sell the company in the first place); ended or let expire unprofitable clients of SIM (the Netscape, primary among them); consolidated both ESVS and ZULU offices; and NB Digital became defunct. Essentially, they put Laptops on automatic pilot to work with the Panasonic deal; and decided to maintain the technical and primary sales staff of Zulu. Also noteworthy has been the continued ability of this company to attract top-notch executive personnel, which only recently has again been proven by the appointment of an ex-Disney employee, Robert Chmiel, who more recently was employed by Barnes & Noble. Furthermore, if this were only a stock play, why continue to keep not only the technical staff, but also sales leadership staff intact? I think it's a hint, given that Zulu owns proprietary technology, that this technical staff has stayed onboard. Anybody else have any insight on this fact? No, Terry. I think our investment has become victimized by a widescale campaign to oppose everything ZULU and ESVS have tried to accomplish. It's my opinion this opposition is nefarious in nature, and I further note it's been present since the beginning. The early nature of this opposition shows we're not simply dealing with only a change of consciousness due to Zulu setbacks and/or failures. Unfortunately, in the course of this campaign, some would-be Zulu advocates have fallen prey to opposition arguments. ZuluGroup.com is still a young company (it hasn't even had a chance to assume it's desired name yet!) and I believe more will come from it. I hope to God I am correct in my analysis, because I assure you I'd feel very badly were I proven wrong.

To: Terry T. who wrote (17057)	12/20/1998 10:07:00 AM
From: Brady B.	Read Replies (3) \| Respond to of 18444

I'm sorry guys. I just don't believe this bull-shit about restructuring and cutting the fat in order to pay off the debts they owed. If you reference the article, you will note that debt payment began to stop in the 4th quarter of 1997 (the quarter in which NETZ took over). Things seemed to be going quite well before NETZ took over. adage.com ************* >>>Mr. West, a founding member of SIM's management team, said he left because "we didn't feel comfortable the business was being moved forward in a manner that promised the greatest success."<<< *********** The European Connection: >>>Gordon Simpson, former director of European operations: "We had concerns about the way the operations were being run, and about the financial stability of the ongoing business." Mr. Simpson said the new owners failed to provide adequate financial support for the European operation, contributing to the loss of its biggest client, Altavista.telia, which is now suing Zulu-tek in London's High Court. Dan Winblad, AltaVista Northern Europe's product manager, said the lawsuit was filed in late February after Zulu-tek failed to pay revenues earned for ads placed on the AltaVista site during the last quarter of 1997. A copy of the lawsuit was unavailable at press time. "We were working very well with Gordon Simpson and Softbank Interactive Marketing Europe. The problems started when Zulu-tek bought SIM," Mr. Winblad said.<<< *********** Employee concerns: Comment - According to this statement someone is lying. It also appears that Party, from his statements concerning Hayton, agrees more with the ex-Simmer(s) than with Hayton on this one. >>>Mr. Hayton has denied he has an ownership interest in Zulu-tek and said he has no involvement in the day-to-day operations of either Zulu-tek or SIM.<<< >>>Mr. Simpson said Mr. Hayton "quite clearly called the shots. In meetings we had, it was quite clear Pat was in charge of Zulu-tek."<<< >>>Mr. West said reports of Mr. Hayton's past financial troubles concerned SIM staff and clients. "The pattern of Hayton that existed [with regard to past dealings] was of concern," Mr. West said.<<< *********** Client concerns: Netscape: >>> "We do not know what Zulu-tek has planned, or what they have been doing," said Mark Evans, general manager of advertising for Netscape. Netscape's Mr. Evans said what concerns him more than the executive turnover is the quality of support he will continue to get from SIM's sales reps. "There's a lot of consternation (synonymous with dismay) about the situation there," he said.<<< Mapquest: >>>"I'm very concerned," said John Durham, national advertising sales manager for Mapquest, which is in contract negotiations to determine if SIM will continue to be its exclusive Internet sales rep. When asked who was involved in the negotiations, Mr. Durham responded, "That's the question I want to know right now. I don't know who the new people are. They haven't contacted us."<<< ************* Stuff we already knew: >>> SIM and Zulu-tek did not return phone calls by press time.<<< bb

To: Terry T. who wrote (17057)	12/20/1998 3:33:00 PM
From: HIGHPLANESDRIFTER	Read Replies (2) \| Respond to of 18444

Terry, what about tax considerations? Up my way, a share transfer as payment for services rendered would constitute income in the hands of the recipient at the time received, not at the time of the ultimate disposition of the shares down the road (which might give rise to an additional capital gain or loss). Where the recipient was a foreign entity, the transferOR would have to withhold 25% of the payment for remission to our IRS equivalent as taxes on the transaction. Are your requirements comparable? With the rumour that Rolling Rock is an offshore entity, perhaps this is one reason why they had to cobble together a U.S. address for the SEC filing. A different kind of dust on the trail, so to speak ...