SPOOZ Inc (SPZI)

[funmaxus]

Part 2: Why Buy The Milk When You Can Buy The Cow?
Part 1: Post # 60278.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33725278
Capital 141 would need to be able to stand on its own two feet after a buyout.
Fears of a buyout may also explain the rather strange behavior by Capital 141 in its rather hasty offer to convert common to preferred shares. By Capital providing the offer of a conversion, it would reduce outstanding common shares and boost a relatively weak balance sheet. Also, it may induce a higher common stock price, after the conversion. Then Capital, would be able to issue additional common shares to supplement income if it was unable to acquire customers and revenue. The threat of a potential buyout would cause Capital to make good on timely payments to Spooz as the new owners may not be so understanding and cooperative in delayed payments, which in turn may subject Capital 141 to problems including a takeover by default of debt obligation. Worse, a buyout of Spooz, may threaten the existence of Capital 141, causing it to collapse. By throwing off the brains and manpower of Spooz, Paul would probably be presently more concerned over the survivability of Capital, which he also has a vested interest.
Kaitrade may actually act as a poison pill, as the brain power is gone. Perhaps the best test of the hypothesis of a fear of a potential buyout is to have a better understanding of Kaitrade being a poison pill. The “who, what, when, where, how and why” needs to be better understood. Any and all information, including date of origination, and perhaps more importantly date of the lease signed for the present building, would be a good start in testing the hypothesis of the fear of a potential buyout and the ramifications that would entail.
Catani, for once I may actually agree with you, but only to the point that there are no employees left in Spooz. My belief that there are no employees left in Spooz is for an entirely different reason and that is Spooz took a poison pill to create Kaitrade, in an attempt to make a buyout unpalatable.
The hypothesis that Spooz was fearful of a buyout caused the strange set of events by Spooz, Capital 141 and Kaitrade.
Again, thank you for your valued time and consideration with this hypothesis. I welcome comments.

JMO