No General Electric - absolut the right quote - and they never will be. First they were dealing with slim coffee - did not work - now they are dealing with Ionic Bulps, however, they do not own the patent rights and everybody out there could take them out of the market. They do not even have the funds, to pay for what they intend to sell, as - based on the agreement they signed - they need a very heavy turnover to fullfill the Licensing Agreement they signed with Ryu.There are some other preambles attached to this agreement, that I would not be surprised if the company would be out of this business within the next 3 months. Further, whenever they issued a statement, they had to correct it - not in public - but in their filings. Among others, just to give 2 examples:
On August 25, 2009 we announced that we had completed an extensive search in order to increase sales and presence in the retail markets and is close to completing a sales partnership with ELS Group LLC of Danbury, CT. Since that announcement, we have terminated negotiations with ELS Group due to disagreements which arose during negotiations of the definitive agreement. We are continuing our efforts to determine the most efficient and effective way to increase sales in our target markets.
On October 30, 2009, we issued a press release announcing that an infomercial featuring our ionic bulb would start airing in Europe in the first week of November 2009. Due to the backlog with our media partner the airing has been delayed. We currently expect the infomercial to air in December 2009.
Then on Oct.21, 2009, they announced, that they have received an order of $ 1.1 Mio. Well, if you go and analyse this statement, then it is very fragile, if this order ever will be executed. The following statement should raise a red flag:
The distributor is permitted under terms of the order to NOT request any shipment of the Ionic Bulb. The order calls for the distributor to begin requesting shipments of the Ionic Bulb during the first calendar quarter of 2010. The prices set forth in the order received and any additional order the distributor may place in 2010 is not subject to change. Zevotek has not yet directly discussed the order with the manufacturer of the Ionic Bulb.
ZVTK is smart enough to hedge themselves. On one hand they release certain announcments to lift the stock, so as the largest loan-giver can sell (You still wonder why they increased the O/S to 5 Billion), but on the other hand they give hints, that nothing may come out of it. I stick with my assumption, there will be more of disenchanted with the management.
Now before you start to yell about bashing a stock, I would like to remind you, that a board consists of 2 opinions - pro - contra. If the pro,s cannot stand the contra, it is not a very good sign. If you think, I am wrong with my description of the situation, tell me, I am willing to learn, but do not excuse yourselves by calling everybody a basher, who has a second opinion.
