Some factors affecting Zions pps fall Feb 18, 2
Post# of 1012
Feb 18, 2018 ZION PR of oil in the drilling mud causes pps to double in a day or 2
this no doubt hurt the usual groups and was part of the reason for a complaint filed against zn by a purported leader of one of those groups. Ryan has kept a very good record of that.
This in turn led to the SEC’s informing ZN of a formal nonpublic inquiry in June 2018 -which crashed the pps and still hurts the pps to this day, as it is not the sec’s policy to exonerate a company even after an inquiry ends with no charges.
This led to derivative lawsuits from individual stockholders who became disgruntled by lack of progress in their eyes. All those suits were dismissed and ca 150k, give or take, of ZN’s retainer was returned to ZN.
This led to pps falling below min bid price for Nasdaq membership. ZN fought that but eventually decided to transfer to the OTCQX- the top tier of the otc market exchange.
ZN finally decided to withdraw from NASDAQ and join OTCQX in2020
ZION OIL & GAS INC (Form: 25-NSE, Received: 10/27/2020 06:58:52) (otcmarkets.com)
government agencies and the nongovt for profit company otcmarkets (OTCM from memory) have been demanding greater accountabilty longterm. This increased rapidly beginning late 2009 to 2011 and to 2016. Greenlighted by political appointees from 2009-2016- under the policy ‘business is evil and thus must be stopped’- brokers began freezing and restricting thousands of stocks- forbidding bigger owners/positions form selling while buying was restricted and many groups shorted those stocks to .0001
in latest round pink ‘no info’ and pink “limited info’ classifications were eliminated under new sec 15c 211rule, resulting in ca 3600 stocks being relegated to the illiquid grey market sept 2020.
The OTCQX was created c 2009 as part of this emphasis on greater transparency. First time I saw it only 25 companies but now over 500 companies. The info provided by otcqx companies for all practical purposes is similar to the big boards. They are all sec reporting. Many foreign blue chips reside on the OTCQX to avoid the red tape and ca 185 k/yr fees of the big boards.
The problem is most investors are not even aware the otc market exists, so that reduces the potential investment pool. Nothing secular we can do about that presently
And even some stock brokers are not aware of the otcqx so they cant inform their searching clients of the otcqx, can they!
E.g., I had a half hour conversation w a stock broker, who as usual was incredibly ignorant of and ragging on otc stocks. He said, ‘they dont even report any financial information.’ I rebutted, “of course they do- I spend as much as 8 hrs/day reading their 10q’s and 10k’s etc “. [on literally thousands of stocks].
During the conversation I mentioned the OTCQX 7 or 8 times. The last time he excused himself from phone [ to look up OTCQX bc he had no idea what it was] and triumphantly and arrogantly returned to shout otcqx is a mutual fund!!. I would not believe the arrogant rebellious ignorance if I hadnt seen it my entire life.
So if even brokers are not even aware of the otcqx you see the problem.
The next step in the reduction of the investment pool is that most serious investors /big boys wont buy a so called penny stock [officially a stock below 5 dollars pps] or especially a stock below a dollar pps.
The big investors who do buy below these pps figures are usually bad elements interested in only manipulation for their profit (such as hedge funds- imo we had one such operator on this board til a couple years ago) or extreme speculators.
Those are reasons why pps needs to be raised because presently last couple years stock we paid up to 10 dollars or more pps for has been rapidly diluted.
ZN should have done that long ago – but like I said companies are focused on operations, not matters like these.
Most companies are NOT aware of all these things – they major in operations and largely ignore these things.
We know Zions banner as largely american xtians [ the great satan as some groups say] working to bless israel (the little satan) as per the Word (Gen12:3). Thats a powerful witness which makes ZNOG a triple whammy target by the world in the midst of being terrestrial pioneers in the israeli oil industry.
Thus Zn has a daily uphill operation and Eph 6 fight -which as evangelicals, as opposed to full gospel, most of them dont know how to fight [a whole book in itself] ,as the ecclesia has not yet grown up and refuses to hear or listen ,as throughout most of history[a whole book in itself ].
So to ease the guaranteed tension between investor relations and longs we need to communicate some of these things in this context– especially the reduction in serious investors resulting from such a ridiculous dilutive pps.
I did warfare last night – how much re this vs how much being a target myself I dont know yet. Being full gospel is the very 1st step on the road to be able to do this warfare [a whole book]– which ZN needs.
Maybe somebody can do the research to confirm/show serious investors / big boys usually avoid a pps below 1 one dollar and even below 5 dollars[officially penny stocks].
On the upper right of Zions otc page we see ZNOG is penny stock exempt [a good thing for many reasons]but serious investors /most big boys will never see that bc a company at this pps will never be on their radar and is unknown to many brokers
ZNOG - Zion Oil & Gas, Inc. | Company Profile | OTC Markets
ZNOG - Zion Oil & Gas, Inc. | Company Profile | OTC Markets
of course another major determinant is the ravenous dspp program, which diverts buys from the market buy sell ratio as a powerful depressant of the pps. Debt has its own problems and absence a miracle white knights dont exist.
Maybe ZNOG plans to bring a r/s vote as part of the stockholder meeting in june – but they need to be informed of the above and how we feel re such a r/s decision bc r/s are normally opposed by longs. Thats bc they are often used by true penny companies who dont have the fundamentals [a product equipment and operations etc] to support the pps and thus pps continues to fall after a r/s in those co’s.
Other considerations- this is a tricky time to do a r/s – it may signal to some that zn’s well is commercially dry, a negative which can be countered by a PR. ZN may have to provisionally make a motion for the june meeting which could be withdrawn if a they have a commercially wet well by then.
Any other ideas on how to solve the pps problem?
If they have a wet well, what then
what if they have something intermediate-enough to pay for this well-thus the next well since this well is paid for- but not yet the reservoir yet hoped for
havent had much time to think since last post since had other responsiblities today
part of the reason for my last post is I’ve seen so many fall away, including on the stock boards bc of their frustrations-, so guard your heart, which is the well spring of life.