Zaio Selloff

[xmtraterbcra]

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.

12 or even 30 live zones out of 7,500 zones in the US, in five years is not good news. Those who are bringing zones live are probably the best of the breed ... and one would expect a more lackluster performance from those who follow. So, even 12 or 30 live zones is not very impressive and does not guarantee long-term success. And how much market share are they going to pull if they are covering less than .5% of the available zones? Why would lenders bother dealing with them?

Also, the reality is that selling zones this year will be difficult for a number of reasons, including the current drop in stock price, lack of financing of the company, poor market conditions, etc.. There have been reports of a noticeable lack of interest (even a certain fear) at their various sales meetings in the US in the past year.

Without zone sales and only a dozen or so active zones (out of 7,500), and with probably few orders coming in for those zones, - the question is one of survival through current market conditions.

Zaio has had numerous problems meeting its obligations to zone appraisers in the past years, and now things are going to get worse.

One could argue that it does in fact need the zone sales to keep going this year. So, there you go ... the investors might just know what they are doing.


Bert Craytor, SRA

 

[Mike Kennedy]

AT the rate the stock keeps dropping.......... so do the "golden parachutes". ..... time to go back to work for a living guys. Hype only gets yu so far........the BUBBLE burst .......shoulda sold all you had in the spring.....

 

[Bama Bayou]

I've never could get a grasp on how Zaio added any value to the appraisal process. Pre-made drive by, kind of like a frozen dinner. Just tastes worse.

 

[Mike Kennedy]

Nor could thousands of intelligent Appraisers or thousands of Lenders.

 

[Bama Bayou]

It worked here about as well as it did in Canada. Which is not at all.

 

[Couch Potato]

It worked here about as well as it did in Canada. Which is not at all.

It worked quite well in both markets. You just don't have the right perspective on success. :new_all_coholic:

 

[TEL2002]

If I do real well at our garage sale this weekend, I might buy a couple of zones. If not, maybe we will make enough so I can buy a couple of shares of stock. If I owned a zone, I wonder what it would go for on the secondary Z ownership market.?



Boy, it must be time for another positive, upbeat, press release.

 

[xmusienb]

I wonder if all those Zowie-Wowie honks who bought 10-20 zones will be able to write-off $90,000 to $180,000 in losses. Just thinking out loud here.

 

[Workbox]

So does this mean that all The AI guys will retire with a nice pension and those with the inside scoop for trading will just leave with a bundle?

 

[Carnivore]

I wonder if all those Zowie-Wowie honks who bought 10-20 zones will be able to write-off $90,000 to $180,000 in losses. Just thinking out loud here.

There effectively a lease so that should be a deductable business expense.