ZAPZ is currently trading at $2.65 as I write this BLOG entry. The stock has just been a disaster this past week. I first published on the stock at about $3.50, and we have lost nearly a point right out of the gates.
Technically there is nothing positive I can say about this chart.
The stock has broken down below the 61.8% retracement level as measured from the massive December surge. The red line, a technical indicator I rarely use, is the 50 day moving average. Stocks trading above their 50 day moving averages are generally considered to be in a short term uptrend. As you can see, it has dropped below the 50 DMA.
I believe the drop in the stock is more market driven than company driven. There is tremendous apathy by retail investors right now. Higher oil prices and interest rates are just weighing too heavily on investors minds, and there was probably a lot of hot money in this stock as it has been a great trader.
If you are a trader you should be out of this stock. If you want to own a piece of a company that has $100 million in orders in hand on a red hot product, and is probably trading well below where the stock is worth if they can figure out an effecient way to fill those orders, ZAPZ is for you.
Comments and questions are welcome as always.
Ahh but, this stock is behaveing beautifully, what has to happen as I see it is; first, get rid of the old traders and let the new money come in, second at the present volume, a month of consolidation. I actually like the moving averages better than the Fabby for the penny stocks but I wish I had your interminable knowledge. But what I do know is a stock that offered no new news and tumbled and came all the way back and at the end of the tradeing session is more than likely some bigger players just entered the picture and I wish I would of been home or had a buy order in at that 2.49. Pooh!
Editor: I know the company is getting huge order flow everyday on the Smart Car. I know the market wants to know how they are going to fill those orders. I’m willing to guess the stock will trade better once the market knows how they are going to fill their orders.
I’m still not sure I buy the idea that the fundamentals are better if inside management is holding all those warrants. They could have simply let the B and B-2 series expire on Jan 1, but instead they extended them to 2007. It’s still a whole lot of potential shares, and dilution is still the single most powerful force in the world of thinly traded stocks.
Editor: The people that run these companies all have warrants structured just like this with the exception of Berkshire Hathaway. The people that run their companies get performance cash bonuses.
What are the names of.the persons in charge of administration, oroduction and sales? What is the namew of the CEO and of the CFO? Thank you for the info. Erik Nielsen
Editor: The CEO is Steve Schneider, and the Chairman is Gary Starr. I am not sure who the CFO is. I am sure you can find it in the SEC filings.
Any thoughts after Friday’s turn-around back to the 61.8 retracement level. It feels like reversal.
Editor: I believe the stock that was for sale has been sold. It seems to want to trade a little better. We will see what happens with the next volume surge.
zapz is going up today
Editor: Apparently, the market took your cue.
Stocks like GM that sell gas guzzling SUVS are going down. America wants a car like smart car that ZAP sells. It’s just now getting attention and the potential of ZAPZ will soon be realized. Can’t you see this?
Editor: Absolutely. My comments were only on the technical nature of the stock. I think this is a very exciting company that will trade really well once the market knows how they are going to deliver all these cars.
For anyone that is interested in investing in penny stocks here’s a good tip. If you get a “good tip” about a stock, it’s probably too late to be investing in it. You need to do other types of research when investing in the penny stock market. A good way to learn more before making your investments is to read the free guide at Pennystocks.com This guide gives great information about the benefits, risks and making penny stock choices. It’s a great resource for anyone interested in the penny stock market.
Editor: While for the most part, I don’t like advertising for others in this BLOG, I like the fact that you are pointing people to the free version. There is probably some good advice in there, and I would recommend people read it.
Remember that the only thing at zap that is in any profitable id the used car lot that the company operates and purchased from Mr. Schneider when he became CEO. Remember that the EPA has rated the smart forTwo at 37 MPG both city and hwy and the West Palm Beach Florida dealer is quoting $ 23,800 for the coupe and $25,800 for the cabriolet.
Editor: So, what’ s your point? That people shouldn’t buy this stock- to me, it’s just a bet on whether they can get the cars. If they can, people will do well. If they can’t, it’s going down.