RE:So far so bad - and it's getting worse!Before you invest or if you're invested already make sure to do extensive research.
Do your research on:
- Zinc8
Check their financials, especially cash position and liabilities. There's no revenue at all. They can keep the lights on just as long as investors are willing to give money. Raising money leads to stock dilution.
With the last private placements directors filled their bags with heavily discounted shares and warrants. The placement was exclusive for insiders and affiliated investors. Public shareholders were thrown under the bus.
Also read all the press releases, statements, watch the video interviews. Make a list of what was promised and tick off what came to fruition (spoiler: you'll find nothing)
- David Hodge, director and shareholder & Zimtu Capital, Hodge's investment firm and major shareholder of Zinc8.
Understand Zimtu's business model. They sell mostly pretty much worthless assets to small companies and help them to get an exchange listing. Zimtu charges the companies for consulting services.
Zimtu is invested from the very beginning when the shares are cheap. They work together with Rockstone Research (a penny stock marketing company run by Stephan Bogner and paid by Zimtu) to advertise for the companies and hype them.
If the share price has been pumped high enough Zimtu sells their shares and moves on. After Zimtu's selling the stock crashes and the remaining shareholders end up as bag holders. They were naive and believed all the great stories they were told. A great majority of the companies never go into production. The money is gone forever.
If you've done your DD properly and still think Zinc8 is a legit company and worth investing go ahead. But you should be prepared to lose a lot of money.