Replies to post #16272 on Zevotek, Inc. (ZVTK)

[Leirum]

DILUTION.

SHARE STRUCTURE:


On October 14, 2009, we filed an amendment to our certificate of incorporation with the Delaware Secretary of State to: increase the Corporation’s authorized common stock from 1,000,000,000 shares to 5,000,000,000 shares. This amendment was unanimously approved by our board of directors and by a majority of our stockholders by written consent.

As of November 11, 2009, 1,173,461,407 shares of our common stock were outstanding.

My comment: The reason why they had to increase the authorized from 1 Billion to 5 Billion becomes clear once you read the recent K10 filing. Interstellar gave loans to ZVTK and those loans are convertible into shares at a price of $ 0.0001. I have mentioned this a lot of times, this convertible is the worst toxic vehicle I have seen for a long time. Even if the company would make some money, due to the explosive growth of shares due to this agreement, the shareholder won,t see a lot. The same happened by the way as well to QMNI, were Interstellar gave as well loans at toxic conditions.
And old rule before investings says: Study how the company is financed. If you see in the filings such toxic structures, you should know, that you cannot make money, unless you play all those organised hypes. And those hypes always come together, when those converted shares have to be sold. It is an every repeating mantra: Convert your loan into shares, hype the stock, sell the shares to uninformed shareholders and stay aside for a while and then you repeat the same story again.
Make your own calculation: Let,s assume, ZVTK would make net $ 3Mio for the fiscal year 2010. For a Reseller, the market will not give a P/E maybe a premium of 100 %. So let,s assume, the market would allow $ 6 Mio Cap and in the meantime you are out there with outstanding 2 Billion, 3 Billion or even 5 Billion. The stock price would then be: $ 0.003, or 0.002 or 0.0012.
Another point to think about: If the company would have been so convinced on what they have, why then grant Interstellar such horrible dilutive conditions? Where is the beef?