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Zix Corporation Message Board

  • downsoso downsoso Mar 30, 2006 3:38 PM Flag

    Looking Forward to Class Action

    Can't wait for these Crooks do be drawn in to Court

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    • Although I thought this might happen a year ago, I doubt it will happen now.

      Reason - no money to get from them. By the time they get to trial, ZIXI will be BK. In fact, that's a good way to get out of it.

      I know from personal experience. Covad lost a class action suit, declared BK and I got 10 cents on the dollar, if that.

      • 2 Replies to theghuzz
      • For the record; this is what will happen.

        Zix mgmt will do another dilution deal probably at $1.25 to $1.35 per share and increase shares outstanding from about 50 million to about 65 million. Over the next year mngmt will figure out that they should have chopped off the malignant part a year ago and they will do it.

        The remainder is a profitable company that makes a few buck. Minimum valuation determining the likely price floor will largely be a function of the email revenues weighed against the large number of shares outstanding after the next deal. I think $0.75 to $1 makes sense.

        There will definitely not be a BK unless they do it again IMO; in which case they should back up the padded truck and usher mgmt off to the luny bin.

        Digging out of the pit? Well the collosal number of shares outstanding will constrain fundamentals for years but at least they can survive. I think I remember that email has pretty high gross margins (like 50% or something like that?). This will enable very efficient growth in the years to follow which will eventually offset the negative shares outstanding scenario.

        I also think I heard it speculated that escripts could be sold for $10 or $20 million. That would be great! Management could take that money and buy back shares immediately or acquire an additional profitable biz unit with growth potential.

        Let the healing begin. alllehlieuyaaaa. Chp off escripts today!Sell it to MDRX and short their stock!

        It is interesting;if properly managed the company could be turned around fairly quickly. Much tougher if they waste another year.

        I guess all this shit is obvious to a casual observer-too bad those dumb fucks in Texas can't figure it out.

        Sentiment: Strong vomit and buy latter.

 
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