To: StockDung who wrote (1994 ) 5/27/1999 3:42:00 AM From: who cares? Respond to
Question, or several actually. If ZSUN cut this deal before the deadline then it likely means that they paid 50k pre-split shares, that's like I posted, almost a million dollars in todays money, but how much will it be on ZSUN's books? They had $700k and change in unrealized gain on their books back at the first of the year when the stock was in the $5 area, though I think it's on their books for a penny a share. Assuming it's all ZSUN shares the company had roughly 140k presplit. With the hype and split, that would ballon to roughly $2.8 million that they could stick on the books today. I don't know what the stock price was at the end of March, but it was probably pretty high, and thus helped the balance sheet a lot. One could dig up their PR release and do a little back calculating and probably see that a lot of money left this company somewhere in the first quarter otherwise they would have had an even bigger quarter just from the apreciation in the stock they held. Hmmmm. Of course this second quarter could be very ugly. With the stock down from it's end of March levels they will suddenly be showing a loss instead of a gain, as well as the fact that they gave up 50k shares for this tout sheet. Throw in Veritas bleeding them for 5k shares and $5k cash a month and the company owned shares are dwindling fast. Also they had to buy this Investor Seminar company with something, and it sure wasn't cash, so they could be running out of company held shares. Good thing the insiders have plenty to sell. Looks like this will all be over sometime in the third quarter when they finally get around to reporting 2nd quarter numbers, unless they can get the price jacked back up above 3-31 close, then they can run this scam for three more months. But, sooner or later, the company held stock will be gone, the price will be down from the previous quarter, and they will take a big writedown. Francoise's favorite comparison WCAP has had this problem. It has a lot of COOL shares that have been dropping for months, so no matter how many of it's holdings go IPO(JWEB for instance) it will still report a loss because it doesn't get the benefit of those shares for awhile but does get all the bad from COOL fallling.
