Replies to post #35848 on Zenergy International Inc. (ZENG)

[byrdman]

good post and a level headed opinion it would be nice to know what margins are for similar companys and how long it took them to become profitable after startup

[Mr Wizard a1a]

Here is a source that shaped my opinion about a company going public and THEN looking for Venture Capital or Angel funding.

http://www.businessweek.com/smallbiz/content/dec2008/sb20081212_457100.htm

"First, if your company anticipates receiving venture capital, it is a good idea to try to minimize the number of your shareholders. For the most part, VCs want to keep things confidential, which can be tough when there are a lot of owners. Also, shareholder communications and tax reporting entail fewer hassles. Thus, fewer than 10 investors would be a goal to strive for.
Besides, VCs wants to see shareholders with experience—not friends, family, and others without experience investing in or running companies. Often, such investors do not understand the role of VCs and can cause problems when key decisions must be made, such as raising more money or selling the company. In other words, you should look for investors who will provide value—say, former entrepreneurs (especially those who have received venture capital) or corporate executives. "

If VC capital was to be needed, a bright executive would get that first - then go public. You think Zenergy is doing it the other way around?

I don't just make this stuff up. I am a pretty good engineer and I have formed a few companies and ran a few. But, I am still learning .. hope it never grows old. ESFYG

[Mr Wizard a1a]

OK Grande, where were we? Oh, yes. You said -

"As far as I know, Zenergy needed to go public in order to raise the 35M or so to get production going."

That was the third possibility I listed. But there is no IPO as there would be with a fresh public company. THIS company already has 510 million shares outstanding with a market cap of $13 million. They have no assets, nothing in the bank, no patents, no business, no production, no facilities. (We know they did not in 2008 SEC filing and there is no reason to think that has changed.) They seem a TAD overpriced already.

You think it is their plan to place another 1.5 billion shares on the market to raise the $35 million you suggest the company needs?

That's why we started discussing Angels and Venture Capital.

So, you see why I ask - why did this company go public now. The only reason is close to what SI is saying.