sl62 and everyone else who decided to hang tough! I will be the first to admit that I probably should have put my market sell order in before post time this morning, never thought it would be this much of a slide in s/p. Ain't hind site wonderful! I haven't time to read every post from today, there are lots. I scanned through as many as I could and read the ones that looked like they contained information from posters who were looking at this logically. I like a lot of us here can not believe that the revenues have been fully reported in this 10q. I was searching for info. where someone could explain how the Co. could get around not reporting the rev's accurately and not be in violation of accounting procedure. Well I think Gil (post# 55142) gave me an answer to that question.
This a quote from his post
"Another example: “The Company defers any revenue for which the product was not delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required.” ------- HUH?!?!?! What did he say? This means he doesn’t have to count any of the money from any of the sales until after the return policy has expired. Any idea how much money ISN”T being considered in this quarterly report? Based on this lil loophole, I’d say A LOT."
Now he also states that the CEO did this to scare off the day traders and flippers. I won't say he isn't correct but I have another theory. Ive read posts where the CEO of ZVTK has been called a lot of things based on what has happened. I think he was even called stupid more than once. Well I think he is stupid allright STUPID LIKE A FOX!!
Now onto my theory. Please keep an open mind and give it some thought before calling me insane etc. etc. This CEO isn't knew to running a co. and I do believe he has a plan. He knows that with this share structure the co. will not attract the number of share holders it would if the the structure were lower. So knowing that everyone was expecting better numbers from the 10q he did what Gil has alluded to and held back the bulk of the revenue numbers knowing that this would tank the s/p. Now he can buy back these shares at a very discounted price. We don't really know how much revenue he hasn't reported from the first 1/4 and since the end of March God knows how much revenue has been generated and is available for this buy back. Some of you are probably asking why dilute in the first place if you are just going to buy them back, well maybe this was done before Babkies watch or they had to dilute to raise capital to buy inventory or advertising. If those shares were diluted when the stock was up it makes sense to try and buy them back when their cheaper.
Anyway, just something to chew on and looking forward to your comments on this.
Good Luck All
AI
