Zaio Selloff

[JoTetherow]

15.5 cents over 5M in volume. thats like 10% of all the stock.

:Eyecrazy:

 

[The Warrior Monk]

15.5 cents over 5M in volume. thats like 10% of all the stock.

:Eyecrazy:

Let's see if Couch Potato is a Potato of his word...he said he was going to start buying at 16 cents.

There are going to be plenty of deals to be had in the coming years in the financial sector. The whole sector takes a beating, but the solid companies will eventually make a nice rebound.

It's different for a company not cutting a profit, is dependent on financing to keep it afloat for at least a while, and has a stock price of 15 cents. Those type of companies aren't going to make it, just like many of the tech startups a decade ago.

 

[xmtraterbcra]

15.5 cents over 5M in volume. thats like 10% of all the stock.:Eyecrazy:

What often keeps the price up is that the many who paid a much higher price just can't force themselves to part with their stock at a few cents on the dollar. But still there has to be some hope of a turn around for them to hold on.

- With only 52 zone sales in the past quarter and the current sell-off forcing Zaio to tighten its belt, most will realize that there will be even fewer zone sales in the coming quarters. Zaio can no longer reach critical mass. IN FACT, when you consider the number of "live" zones, the picture is even more bleak, 5-7 live zones out of 7,500. - I think a lot of shareholders are going to throw in the towel ... it may take a week or two in some cases.

Zaio was doomed as a PUSH system (in manufacturing this is known as "Build-to Inventory"). Manufacturing largely opted for the PULL system ("Build-to-order" or "Just in Time") from Japan in the 80's. Independent fee appraisers have always used a PULL system. Thus, Zaio was a backward innovation.

The only way a PUSH system for appraisal to possibly succeed is to leverage other parts of the market:

1. To work with existing MLSs to leverage the data, pictures and video brokers input in the course of entering listings.

2. To get the cooperation of lenders to require borrowers to have home inspections every 7-8 years (not a bad idea), in such a way that interior pictures and condition become documented for appraisal use.

3. To get the cooperation of the appraisal community at large.

4. To get MLS companies to standardize.

5. And other ...

The probability of getting such a system off the ground in 15+ years is only 20% or so in my estimation.

Zaio didn't stand a chance. I always said so. It was a hoax. - The minimum fee to just score a zone should have been $150,000+/- (and an appraiser would be putting his license at considerable risk to take on that kind of order). I never could understand how anyone would actually pay $8,000+ for a zone - especially given the lousy contract. Beats me to this day....

Bert Craytor, SRA

 

[Carnivore]

David,

I dont think Mr Potato Head said that. I did, but now have changed my mind until it reaches $0.05 cents.

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I never understood why they sold the zones int he way they did. Seems like sales teams from coast to coast could have sold it all in about a year.

 

[Financially Feasible]

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

Webbed.

My guess would be either Gordon Gecko or Sir Lawrence Wildman. :icon_mrgreen:

Bert,

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

Caterina - neither my etrade account, nor cnnfn.com, recognize ZAO. ZAOF.F has the current price at 0.3369 but with a bid price of 0.178 and an ask price of 0.199 (that's a large spread). It's an OTC stock which makes it very difficult for day traders to get a piece (unless you offer equal to or more than the ask price which, in this case, you'd be losing over 10% as soon as the transaction settles). I bet that someone is making a small fortune shorting the hell out of this stock.

 

[GCJim]

I bet that someone is making a small fortune shorting the hell out of this stock.

Damn, I missed a good one. Oh well, I guess I'll just have to wait for the oil bubble to burst now.............

 

[George Ellerman]

Zaio =

 

[Squareitup]

I bet that someone is making a small fortune shorting the hell out of this stock.

The current massive volume and price plummet make no sense in terms of Zaio's recent good news, of Zaio in general, of the stock market in general. Someone wants Zaio's price to drop, and for a reason. The most likely reasons are to sell Zaio or to lure an investor in. Zone sales are way down so Zaio needs revenue far above what their AMC profits supply.

If Zaio just loaded 12 fine-tuned zones "live" with the assistance of clients (as yet un-named, by the way), with many more zones to do the same shortly, then that is the news that zone owners have waited five years for. That would logically support a rise in stock price, and it would be around $1.25+ or higher by now, even on that first blurp of good news out of Zaio, it if wasn't for this new mystery trading having shown up. Weird. Very.

 

[Couch Potato]

David,

I dont think Mr Potato Head said that. I did, but now have changed my mind until it reaches $0.05 cents.

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I never understood why they sold the zones int he way they did. Seems like sales teams from coast to coast could have sold it all in about a year.

He must have me confused with someone else.

As recently as the last half of 2006, the stock had never been above $0.75 so I would not consider it a really big deal until it gets below $0.05

It is my opinion Zaio stock has simply fallen back to the price it should have been all along.

If you have money you won't get too upset over losing, $0.05 might be a decent price to speculate on the stock.

 

[TJSum]

Squareitup, maybe the good news did not meet expectations. Usually announcements are already built into the stock price based on expectations of what the news will be. So it is common for any stock to drop upon the release of "good news" if expectations are not met.