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Microcap & Penny Stocks : ZuluGroup.com (ZULU/ESVS)-Ecommerce & Internet Advertising -- Ignore unavailable to you. Want to Upgrade?

To: PartyTime who wrote (479)	1/26/1999 5:07:00 PM
From: kemosabe	Read Replies (1) \| Respond to of 2003

yes, very familiar: "... readies itself for expansion and acquisition, it's adding new high-salary staff members with specialties in sponsorship sales." hmmmmm

To: PartyTime who wrote (479)	1/26/1999 5:23:00 PM
From: Jon Tara	Read Replies (2) \| Respond to of 2003

There's a difference between 24/7 and ZULU/ESVS, though. They are selling shares at FULL price, with a public stock offering. ESVS sold their last shares at a 50% discount to the market, in a private offering. The Investor Preferred converts into 10 million shares of ESVS stock, and converts when the acquisition deal closes. That's almost twice as many shares as ZULU shareholders will wind-up with. And what did the "investors" in the Investor's Preferred pay? The equivalent (post-split) of 50 cents a share, at a time when the stock was selling for the equivalent of $1.00 share. TFSM choose to respect their shareholders, by offering new shares at the market price. (This also brings in more cash to the company than with ESVS's scheme.) ESVS, on the other hand, has shown their contempt for current shareholders, by privatly selling shares at 1/2 price. One has to wonder whose interests the board is really looking after. I would be equally critical of TFSM if they were selling new shares at $18.50/share, while their shares trade at $37. But they aren't, which is why you can't compare TFSM's apples with ESVS's crabapples.