the deputy,

Your post says: "Goldhunter, Thanks for posting the "floor level" that you project at around $10/share. What bothers me however, is your last statement where you say, "$10/s is just plenty to make some of us millionaires." Good for you if you are one of them. The problem I see is that the people owning enough shares to become quite wealthy will sell out the company at lets say the $10/s level, perhaps leaving those with a fewer number of shares hanging out to dry."

You raised an interesting point. However, it not my intention to segregate the potential milionaires from non-millionaires in this paper exercise with a floor level of $10/s which represent a 5-bagger from the current SP of ~$2.20/s. A 5-bagger ( 500% increase is a respectable gain for any investment (noting that the banks are paying for the money in our savings account, less than 1%?).

- Some historical perspective: 2 years ago ZEN was at ~$0.50/s and 3 years ago it was ~$0.20. So, if you are one of the early (lucky) investors, the increase from 2 and 3 years ago to the presnt SP would be 400% and 1000% respectively. Now, if we tag on the potential (floor level) from now to some time in the future, the increase would be 5x400% and 5x1000% which are phenomenal.

Some of the early investors could probably cash in at the current SP level to pocket their 10-bagger, if they think the gain is enough for their investments. For example, they could sell NOW to get the money out for their early retirement to travel the world? Some may want to wait a bit longer hoping to get another factor of 5x, but these are personal decisions, depending on the circumstances, when to sell a stock.

- Millionaires vs Non-milionaires: Let's look at some fact:

Cost to buy 100 shares @ $2/share (1 lot): ~$200; 1,000 shares = $2000; 10,000 = $20,000; 100,000 shares = $200,000. So the investors with 100k shares could become millionair, and the rest would remain non-millionaires. However, their investments would still represent the same 5- bagger, with gains of $800, $8000, $80,000 respectively. So where do the non-millionaire draw the line? Is $80,000 gain (for a $20,000 investment) is good enough, to sell @ 10?

There is a saying, something like "it takes money to make money". For example, if the bet is 1 dollar and the win would double the money, then the gambler would get 2 dollars, for a gain of 1 loonie (a Cdn 1 dollar coin). On the other hands, a high-roller with a bet of $1B would get $2B, for a net gain of $1B, which is quite a bit more than 1 loonie.

- Millionaires vs Multi-millionaires: AE has some 5M shares, so if his thinks that $10M is good enough then he could sell now. But if he waits for a 5-bagger, and if this were sucessful, he would get $50M ($10/s), and $100M (for $20/s). Is $50M good enough for AE? Only he (or his other person) can tell.

- Control of Zen stocks: Directors & Management has 25%, institution 19%, retails 56%, but in a voting situation the retail group is not a coherent group, some of them don't even vote. A 50% turn-out would reduce the 56% significantly, while management and institutions would (normally) work more closely together and stay as a block hence would retain their control. In ZEN case, this is the controlling block. Retails, millionaires or not, don't have too much of a say, e.g. in a TO. AE has an influential ~9% OS, for his block of 5M shares, but he would still need support from his friendlies. Even if he got removed from the company, his current worth is ~$10M, enough? May be not.

By the way, the potential individual millionaire in this discussion hold 100,000 shares (=0.1Ms), which is approximately 0.18% of the OS. Even if 100 of them get together (100 x 0.1Ms= 10Ms), their vote would only represent 18% OS.

Just a few facts to play around with (trust that my math is correct, if not, feel free to correct, but the general sense of the message is all there). No offence to anyone intended.

As a conservative person, the SP floor level of 10 is good enough for me, 20 is better, 30 is really something, etc...

goldhunter