Zevotek, Inc. (ZVTK)

[mysticjinx]

Only from the last 10Q and 10K (which I have read extensively).

They have been diluting stock in FY 2008 and 2009 to pay their bills.

SO...they probably kept diluting stock to pay their bills.

Their float increased from around 176M shares in 2008 to 671M shares in 2009. (The OS is 1.2B, and the company holds an additional 3.8B shares that they can eventually release if they need to).

The CURRENT OS and Float are unknown, and will be released in a few weeks (they are due Feb 15).


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I am saying this because I don't want everyone to think DILUTION means they are doing something wrong. Dilution is NORMAL for this company. They have been doing a small amount of dilution to pay their bills - and the company has CONTINUED TO GROW, and the PPS has CONTINUED TO INCREASE despite this dilution.

Nothing to worry about, unless the figures are whacked.

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The thing to keep FOCUSED on is:

1. They are NOW bringing in income. The need to dilute stock is no longer there. (they had no income prior to December 2009).

2. The stock price has gone UP.

3. The current SALES of light bulbs, as we have tracked, are OUT OF THIS WORLD. The company is on track to have gross sales in the many many many millions. I believe someone was talking about 5,000 orders a day - and it is JUST STARTING.

(5000 x $20 = $100K per day! That is $36M a year!)

Who needs to dilute stock when you are doing $36M a year in sales?