Tranzeo Wireless Technologies Inc TZWLF

RE: To Reiterate ...

[AmericanInv]

I'll agree with Ondariis that the $400,000 payment in overpriced common stock is immaterial, and likely not holding the price back due to the immaterilaity.

One factor that is likely holding the price back somewhat is the additionaly shares required to be issued based on the earnout period of 1 year.  Given the recent press releases and conference call that have stressed the importance of the Aperto acquisition with respect to landing sales, it seems likely that this amount will be high.  The amount is capped at 25% of the common stock outstanding at the merger date, however it may very well be that high.  All in all though, that might lead some investors to apply a discount of 25% to a valuation calculated based on current figures, however I still feel the stock is undervalued by much more than 25%, so that is likely not the only contributing factor.

I would think any of the following reasons could be contributing to the depressed stock price:

- Uncertainty related to the successful integration of Aperto and the Aperto product (although this should be somewhat mitigated by the relationship that Aperto and TZT had before hand).
- Investors have yet to see any significant revenue recognition relating to the backorder.
- Smallcap technology company may deter investors.
- Cost structure and production capacity are not proven at this size (although Eyal's conservative report shed light on what a worst case scenario may be)
- Share price manipulation (I have no proof of this, although it's just something to throw out there)

At any rate, all of these factors will clear out and be proven by Q3 (possibly somewhat by Q2) hopefully.  I am still quite optimistic about the company, and if anyone is purposely pushing the price down with the intention of having it rise again, its just a matter of taking advantage of the low valuation and waiting for the eventual rise in price.