Zentek Ltd V.ZEN

Mathieu Martin - Stocks and Stones - The Bad

[Possibleidiot01]

1. In the absence of a "confusing" category, I'll leave this one here: Zentek (TSX-V: ZEN), an intellectual property technology company, announced an upsized private placement and a share buyback program on the same day, less than two hours apart. The company is raising capital by issuing shares and is looking to buy back shares because management believes they're undervalued. I love sound capital allocation.

[Continuityiskey]

Buyback stock while burning pre revenue. Then issue stock at a lower price. On the other site the moderator actually chided a poster for complaining about it explaining that it made sense. And cautioned another for criticism of management.