Zaio Selloff

[xmtraterbcra]

An interesting phenomena is occuring: Zaio came out with an annoucement Tuesday, July 8, that it has moved from the "developmental" to the "operational" stage.

Coincidentally they mentioned that out of about 7,500 zones in the US, they sold a total of 54 last quarter for a total of 1,773 zones. Let's see, that's 54 x 4 = 216/year. At that rate they will have the remaining zones sold in another 26 years. [Of course assuming that the downturn in zone sales levels off to 52/quarter.]

- Maybe that explains the sell-off in the last three days. The stock is now $0.25/share from it's high of $5.20/share, with a 70% drop in the past two days. At this moment, the sell-off is ACCELERATING. - Yesterday, 2.1 million shares out of about 56.5 million sold, or about 4%. This morning, as of 10:45 EST, 1.6 million shares have already sold.

Bert Craytor, SRA

 

[Webbed Feet]

The real question.... Who's buying?

Webbed.

 

[xmtraterbcra]

The real question.... Who's buying?

Webbed.

Whoever is holding large portions of the outstanding 56 million shares is probably very busy trying to convince some sucker of a change in strategy or some sort of turnaround. Zaio has been somewhat successful at finding suckers in the past.

1.5 hours into trading, Zaio is down from $0.33/share to $0.22/share or 30% - and sales of shares already exceed yesterdays.

Per their announcement from yesterday:

Scottsdale, Ariz., July 10, 2008 [FONT=Times New Roman,Times New Roman]-- [/FONT]Zaio Corporation (TSX-V: ZAO) said today that there have been no material undisclosed developments which would account for recent changes in the Company’s stock price.

The Company was pleased to announce on July 8, 2008 that it had reached a milestone in its database technology and had advanced from the developmental to operational stage. Concurrently, the Company announced that Zone sales for the second quarter were lower than in recent quarters and that the Company was decreasing its development and operational expenses on a go forward basis. The Company has also replied to the Alberta Securities Commission pursuant to items disclosed in a press release on June 30, 2008 and is awaiting their response.

"As a result of lower zone sales, there may be speculation that the Company will be required to raise additional capital. In order to prudently manage the Company, Zaio is currently reducing its expenditures and is evaluating various financing alternatives," stated Keith Sawottke, CFO. "The Company has not entered into any specific financing transaction at this time."

Bert Craytor, SRA

 

[TJSum]

The real question.... Who's buying?

Webbed.

The 1,773 Zone Owners I guess...

 

[xmtraterbcra]

The 1,773 Zone Owners I guess...

Well that would be a turnaround, if they succeed in resting control of the corporation from current management and then moving everything from Alberta to Arizona.

Price/share is now $0.20-$0.21 with a whopping 2.9 million shares sold in the last two hours. A 35% drop in the past two hours.

Bert Craytor, SRA

 

[Caterina Platt]

Interesting, Bert.

Where are you able to find the data for the volume? PE and I were looking yesterday on typical sites like Yahoo investments, Quicken Investments, and TD Ameritrade, and I wasn't able to access volume and price updates. I'm assuming this is because Zaio is an over the counter stock and not on any exchange, but I'd like to know where to look.

Thanks!!

 

[JoTetherow]

.21 over 3M in volume.

WTF???

http://www.tsx.com/HttpController?G...tehome&Language=en&QuoteSymbol_1=zao&x=15&y=7

 

[David Molenaar]

Interesting that most of the buyers and sellers are all in Canada.

 

[Caterina Platt]

Bert,

Found the problem. PE and I were checking ZAOFF, not ZAO.

 

[xmtraterbcra]

Interesting that most of the buyers and sellers are all in Canada.

Actually, I don't think you can tell who the buyers and sellers are - because many buy and sell largely through brokerages in Canada. At least this is always what I assumed.

Bert Craytor, SRA