Originally posted by skiracer
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- They just sold a division for $8 million that accounted for only 1/10 of revenue
- Management has declared a share buyback of $4 million (half the cash value of the sale) after the 1 day blackout period after they report earnings.
- At today's prices, the market cap is $14 million, so this means that the company is using cash to buy 28% of itself within 1 or 2 days after they report earnings.
- Scheduled earnings are for next Monday, March 31. The buyback should begin on April 2 if the earnings report is issued as per the press release.
- The current average volume is 55,111 shares per day. $4 million worth of volume equates to 8,000,000 shares at a price at $0.50 each. The current ask is $0.47...
- This makes me think that the volume coming in will be substantial and it will all be on the buying side.
- Stock market pricing is a simple supply and demand relationship. When there is more demand for a stock and the supply doesn't change, then price will increase to a point where demand decreases.
In summary: ZANE stock should see lots of demand, but the supply of shares should not change. The risk is that this is a sham company, with no real operations, that lies and lies and lies. The management doesn't have a criminal record that I know of.


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