19% on the market and trading over 2 million shares just for one day. Obviously, the investors’ interest was successfully provoked but what’s behind the high move this time?The last news published by Zagg was that its CFO Brandon O’Brien was to present at the 2010 Southern California Investor Conference on 17 August, though there is no further information on the company. However, yesterday, Zagg became one of the top volume gainers on NASDAQ with no news released.
Historical data shows that over the last months, the stock has been moving up and down frequently and the announcements on the company seem quite contradictory. In June, this year, the stock was promoted three times, though the price change remained negative.[BANNER]
In July, Zagg was solving problems with its iPhone 4 antenna till its invisibleSHIELD product made the stock jump up again. Apart from this, the company was forced to sell stock to keep its cash flow positive, while the practice forced approximately 10% dilution for its shareholders over the past year. During that time, Zagg was trading about 50% higher, however in November, 2009, the stock entered a downtrend.
This month, the company reported its second quarter results for this year. According to them, revenue of Zagg increased by 64% as compared to the second quarter of 2009, and its gross profit got 50% higher. Net income of the company also increased, though Zagg suffered higher operating expenses. During the second quarter of this year, the company’s assets totaled as much as the liabilities and stockholders’ equity, and the net loss appeared to be about 50% higher as compared to the previous quarter.
Based on all the above-mentioned and on the fact that the market position of Zagg is not certain, traders should carefully consider what to do next.
