The series of loss days was broken yesterday, when ZERO got 10.53% back to close at $0.315 on 129 thousand shares. It is possible it hit a support on Monday, or it could have been this promotion that made the price move up.
The $5000 compensation is not impressive, but it is in the usual range for the promoter. While the price bounced the volume for the session, it was below the average for ZERO. In addition, it closed below the high of the day.
Although the 10-K didn’t reveal any information that would be too disturbing for a development-stage company, it seems to have had a profoundly negative effect on the price. In the report traders can find statements like “…will need to raise substantial additional capital…”, “We have a history of losses”, and other that are a constant in such development-stage companies’ reports.[BANNER]
The lack of revenue and liabilities dramatically exceeding the assets are also factors that can scare off potential investors. However, they are also a common thing to see with development-stage companies. It should also be mentioned, should ZERO manage to realize its plans, the potential for growth and profit is huge.
At the moment, it seems potential and forward-looking statements just aren’t enough for investors. Without further developments, it is hard to say where ZERO might end up.
