Originally posted by Dome Strategic
and I imagine the lack of buyers is due to the escrow release on Oct 15th (certainly keeping me from buying just yet)
The escrow worried me a little. But I finally bought in on Friday. But with millions of 50 cent shares to hit the market, if there is a seller in there, they can really crash the price of a share that trades 100-200k a day.
Mind you, it is possible with the company looking so good, they will keep their shares. But I think it will be a headwind. I hope I did not buy too early. But honestly, a simple, solid business on a PE of about 9... and growing. It would be nice if they decided to pay a dividend. If you are earnings per share of 8.5 cents, then there is money for a divvi. And with paying tax, there is franking there. (I guess... not sure if they have tax losses they are eating up)
To get some perspective, re the selling of shares, I was watching WGX and it was rebalanced in GDXJ. The 3 or 4 mill shares sold caused the share to drop over 10%. Just because someone was selling.
In looking at volume on ZEN, the big volumes of early Aug (1 to 2 mill a day) caused a 20% dip (1.20 to 95 cents) quick smart. So I dont know what volume the market (buyers) can soak up. And who knows if the shares will be sold on market. So my brilliant analysis says the price can dip to 70 cents. Or it can stay around here for a while. And if the escrow shares are not sold, the price can rise. So I am sure the price will go down, or stay the same or go up.
So, I have just decided the current price is very fair. And I think the Aussie dollar falling will help Aussie miners so there will be more business to be inked. I wanted a share in this space. PEA is odd that they seem hard to understand with subsidiaries and African operations! GNX I love but nobody will show if they can / will make a profit. So boring old ZEN it is. Profitable, PE 9. Growing. Simple. (and they did take that Newmont contract off PEA, so I guess the miners will look favourably on them)
If the escrow shares appear in the low 70s, I will be there to gobble a few.
