I don’t think you’ll see this hit below $1.50. If it does, then the market has completely overreacted and you’d see a swift bounce back follow. Shorters will have you believe this is heading back to 10cents.
However this stock has a long way to go before seeing the $2 days again. Sure a few positive announcements will be released between now and years end, but in the short term, it seems the market expects a revenue of 20mil + to send this upwards.
The market also doesn’t seem to believe that Zoono can survive in a post Covid world, so if it’s doing 15mil a quarter now then what will they do after the pandemic? 5, 10mil.
This is however is a simple way of thinking, because for all we know Covid could change the way our society views public health measures the same way governments changed airport security post 9/11. In other words, Zoono could an important player for years on end.
If this happens, and the business continues doing 15mil a quarter post pandemic, then that is an SP which is significantly higher than this one.
A few key points to look at: Short term red flags: Impatient investors No more quarterlies (half yearly reports now) Lack of belief that the product can succeed post covid Bots and shorters running rampant
Long term positives: USA growth (this is just the beginning) Bigger brands using Zoono Regulatory approvals underway Animal health Social distancing etc expected to continue until 2025 Growth growth growth
On a side note: People assumed revenue was on a continuing downward trend in Q4 as we went from 10mil in April to 5mil on both May and June.This quarter however has proven that thinking wrong as revenue hasn’t continued dropping, but had plateaued.
You can view that as a positive because we now know the benchmark: 15mil per quarter. If it’s any less, that’s a problem, but in a way it’s positive as all it takes is 1 or 2 major deals to send the revenue flying.
If you apply conservative growth figures, then all they have to do is an additional 1.5mil per month to be in the 20mil range. Whether you guys think that growth is achievable I’ll let you decide that. Personally, knowing how sales works, major deals always come in throughout the year, so it’s quite doable to add significant revenue on top of the 15mil.
I sold out 80% of my holding today at a very minor loss as I was really close to my average and kept 20% in, only because this could go either way over the next few months. I’ll be on the sideline watching to see where the bottom trend is. To the holders who are saying $1 is on the horizon, i just don’t see that happening.
To those who bought in at $2 plus, just remember why you invested in this stock the first time around & think the about bigger picture & the place Zoono will have in the future.
