This is a prime example of why retail investors should approach...

This is a prime example of why retail investors should approach institutional commentary and capital raising events with a healthy dose of scepticism. The $217 million capital raise, ostensibly to discharge a $90 million corporate facility, raises serious questions about how much of that money actually went into bolstering the company versus how much lined the pockets of those involved. Jonathon Higgins, in his dual capacity as Head of Research and Managing Director of Unified Capital Partners, was perfectly positioned to benefit financially while simultaneously promoting ZIP’s turnaround story. It’s difficult to separate genuine optimism from self-serving interests when the same firm co-leads the capital raise and then publicly supports the stock with lofty projections.This isn’t unique to ZIP. The financial media and analysts often present glowing forecasts, but even when those projections come true, they rarely account for underlying business fragility. ZIP may have discharged its debt, but the business is still fundamentally weak, operating in an intensely competitive sector with persistent profitability issues. Retail investors should always question who stands to benefit from these transactions and promotional narratives—chances are, it’s not them.