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

To: Jon Tara who wrote (1109)	2/19/1999 8:34:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 2003

Confidential to RDPBMW: (In answer to your YooHoo query) 1. I thought my post was clear as to my reason for buying. It's a trading move. Nothing fundamental has changed about my view of either company. I still strongly suspect that the whole thing will turn out to have been a total scam. But I believe that the spin-meisters should be able to get at least some kind of pop out of the stock on the prospect of the IPO, and that it will be a while yet before the whole mess unwinds itself. The situation leads itself to simplistic formulas that will be spun to show how the stock "must" rise at least 4X from here. BB investors eat up simplistic formulas. (I won't ask about BFL's debt, at least not until after I sell my stock, and I'm sure that nobody else here will either.) 2. ESVS over ZULU because of the risk of the ESVS/ZULU deal not going through. ZULU shareholders only have a stake in the BFL IPO if the ZULU/ESVS deal is approved. It's a long time to the proposed IPO - plenty of time for ESVS/ZULU to fall apart. And a previously-implied deadline coming up in just a week. Notice how the company has gotten more cautious in their press releases, now describing ZULU as "affiliated". I don't think that people reading that press release will necessarily make the connection ESVS=ZULU. And I am more convinced as ever that ZULU brings absolutely nothing to the party and that the combination makes absolutely no business sense. It's ESVS that has the high-power executives, and that is the only asset that either of them has. ZULU's past is a significant liability. All ZULU has is lawsuits and angry ex-customers and angry ex-suppliers. Admittedly, it's a hard sell with ESVS being pink, but it's still my judgement that there's a lot less risk in ESVS vs. ZULU, if your focus is on the BFL IPO. They are more-or-less trading in tandem now, so no particular price advantage of one over the other at this time. If there is no February meeting (now seems likely) then I'd expect ZULU to start drifting down from ESVS. It will take time for the spin to be spread, and I don't want to risk ZULU falling away and having no connection to the BFL IPO. There's a lack of liquidity for ESVS, but that's true for both, and in any case I am looking for a 50% to 400% move, so I'm less concerned about shaving the last penny from the spread. And, finally, Pat Hayton said that ESVS was the better deal. If you're gonna ride shotgun with the devil, you'd better listen to him while you're in that seat.