Member Bullrams asked me my opinion on ZAAP.OB early today and in fact ive been following this stock for the last month or so. I was watching for a breakout of the symmetrical though price slid heavily eventually to fall back below $1/share.  Though i was surprised to not see more positive movement in price action when a company who only reported $10m in sales last year announced that they received a $79m order for a new “green” car dealer based out of chicago that is being sponsored by 2 “green” favored hedge funds. Volume bursts struck home on the news but couldn’t sustain a rally at the descending resistance line. I havn’t dug much into this on the details of the $79m order and when those sale will be recognized. But let me say that ZAAP really needs orders like this if they want to become a profitable company. Currently their margins are horrible barely leaking out any gain on the sales, as well their SGA expenses were 60% higher than their 2006 revenues.
From a technical analysis view this could bring an opportunity for an entry near ascending support and ride the swing back up towards descending resistance around 1.25 pulling in a quick 25% if a rebound comes into play. I’d like to find out more about this $79m deal before i consider anything else, i feel like somethings fishy here. And that price should have reacted more positively to the news.

I mentioned i wanted one of ZAP! ‘ lotus sports cars. Its pretty impressive being that its a battery powered car that can do 0-60 in 4.8 seconds with a massive 644 horsepower!!

This entry was posted on Wednesday, June 20th, 2007 at 10:49 am and is filed under Speculative Stock Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.