Retracement for now I tried to say this I hope many listened to my concern on Friday it went down to .105 as predicted. Charts are charts support and resistances will be tested on negative news plain and simple. Now looking forward Zena has a short-term bumpy road ahead. 1-2 months on consolidating most likely we could test .085 not certain of coarse but possible. Because the fact is they paid of 20 million in debt which is a positive but in doing so diluted to 600 million shares and had a loss of of 15 million in operations. So even now ebitia is positive this is not what I wanted to see. I didn't want to see 20 million paid off only to loose 15 million after diluting. So in the end we issued 150 million shares or so for 5 million this quarter and a chance to comeback instead of that dreadful word bankruptcy.
Overall I'm not happy with it!! What's new
however I'm bullish on Zena for Q4 I truly believe the worse is behind them. Q3 I anticipate 35-40 million with Q4 bringing the homer in quarter of 40+ Closer to 50 I'd think.
Now if we can have losses go away for good next quarter and show continued growth I finally believe Zena could be on the track to profitability. However adding to there deficit 15 million regardless is a big step backwards arguably a whole quarter of profits if/when they get there!!
Thats why short term I sold half my position not all because of the obvious downtrend from negative presence of the losses to the market. It only makes sense because again it's no small number to erase. Zena will be profitable and will overcome the deficit but again this just added another big profitable quarter to do so.
They have a serious deficit adding to it sucks once again but I'm bullish because in 3 years this company could be the behemoth it set out to be. But again short-term we gotta hope everything goes smooth and all promises get fulfilled and with Zena a history that's simply not easy.
Short-term I'm bearish
long-term bullish
in the end go Zena go