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Re: StocksXpert post# 2257

Sunday, 03/07/2010 4:54:47 PM

Sunday, March 07, 2010 4:54:47 PM

Post# of 2794
StocksXpert...Generation Zero name...reverse split.....

"I wonder who came up with the name Generation Zero? LOL. But at least they predicted where this stock is heading after the split. I cant get up. LOL!"

I would assume that Matt Krieg and/or the team of people at Kostya probably had a role in the new name. Personally, I happen to like the choice. Based on Krieg's past work experience and the "Generation Zero" name, I think it is logical to assume that the new business direction probably revolves around two potential areas.....

1) Something in the travel and/or search engine technology industries.

2) Some type of business that targets or appeals to people 25 years and younger.

"There are too major reasons for an RS, one is bad and one is good for the shareholders. The good one is when the co reverse splits to up list to higher exchange, the bad one for the shareholders is when the co needs to raise funds by issuing new shares, aka diluting. Obviously the co is not up listing so therefore there is only one logical reason for this reverse split."


Again, you can't take a brush and paint all dilution the same color. If a shell/stock does a reverse split and issues shares to either complete a financing or an acquisition, that doesn't automatically make the dilution a bad thing. Taking the "all dilution is bad" approach to stock investing is something I don't adhere to because it would basically prevent me from investing in most shells/stocks, and in the process stop me from investing in situations that eventually turn out be fantastic investments.

My primary concern at the moment regarding GNZR is that promissary note and any remaining debt that wasn't covered by the money Krieg used to purchase control of the shell (since one of the conditions of the control change was that all of VOIG's debt other than the promissary note be eliminated, I am assuming that money was used to pay off the debt). As long as there hasn't been some unexpectedly ugly pre-split dilution, or some kind of ugly change to the note terms that would result in an ugly post-split dilution situation, I generally like my chances of walking away from this investment with a profit.

As I have kind of hinted at in previous posts, my hunch is that you will see William Goldstein involved in this company. I don't know whether it will be in the form of management, a director position, advisory or financing, but I will be mildly surprised if you don't see his name pop up in connection with this company at some point.

I could be completely wrong here, but my hunch is that the reason for the GNZR reverse split can probably be best described by a statement that William Goldstein made back in 2005 when his Amex company secured a $31M private placement......

"This reverse split will better position us to attract additional institutional investors to our stock, which is critical to the success of a public company."

http://findarticles.com/p/articles/mi_m0EIN/is_2005_April_19/ai_n13631471/













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