Australian (ASX) Stock Market Forum

ZNO - Zoono Group

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ZNO n 22-12-17.png

It appears the reversal is happening in earnest. I took the MACD Divergence as an early invitation to get back on board, albeit with a small starting position. During the week, I've increased the position size to 1 1/2 standard size.
First target 50c; stop on close below 36c.
 
PS: Would anyone with Elliott Wave experience care to comment on the possibility of a 5-wave structure, with wave 5 running from 42c down to 25c?
 
The volume is still underwhelming, but the price pushing higher could indeed suggest that yesterday's Low was all about that gap. A***mazing! :p

ZNO pm 12-01-18.png
 
Zoonoo Group zooming along during May after bouncing off long term support at 15c. No news has been released by the company at all this month, so it would appear that someone is accumulating ZNO at these levels having perceived it to be undervalued. Volume is not particularly high which would seem to indicate that there are not many sellers at these levels.

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Zoonoo Group surging today after announcing that it has signed a distribution agreement with Zoono USA LLC, Zoono's USA distribution partner, and MicroSonic LLC to supply its innovative antimicrobial products exclusively to Turtle Wax, Inc.

The agreement also gives MicroSonic rights to the Cruise Industry that has had well publicised issues regarding on-board bacterial and viral outbreaks. The sales volumes agreed include the Cruise Industry.

Minimum MicroSonic Zoono Z-71 Microbe Shield purchase commitments under the ten year agreement are:
  • US$2m in calendar year 2020;
  • US$3m in calendar year 2021;
  • US$6m in calendar year 2022;
  • US$12m in calendar year 2023
And thereafter increasing by 10% per annum.

ZNO currently up 85.90% to 14.5c, after having reached an intraday high of 18c. Huge volume at 2.7 million shares traded. Looks like the bottom is in for ZNO at 7c.

big.chart-ZNO.gif
 
Priced spiked up with the news of two distribution agreements for their products. Since then price has drifted almost all the way back to where is started. This is not good a bullish outlook. If there was some real demand for their shares, price would not drift so low. I would have expected price to find some support at the old BO level (0.13).

Selecting ZNO for the monthly comp (July19) is a pure gamble because there's an acceptable R:R if demand reappears.

IMHO if price stays below 0.10 for much longer it would indicate the last news announcements were "promotional".
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Are there any fundamentals that gave you confidence in ZNO, @peter2 ? The nature of the agreements will mean little in the way of revenue this quarter or the next, I expect.

Anyone with a view that the chart reveals an underlying hump of jaded shareholders looking for a bump to sell out?
 
No, this is just a gamble for the monthly comp. The announced "agreements" seemed to me to be an attempt to "P&D". Once price gets back to where it started I'll remove it from my "spec" watch list.
 
Totally forgot about ZNO and I noticed that it had made a decent move up today and boy, has it done well over the last three months.

In short, the company is rapidly expanding and has signed up a number of new distributors throughout Europe, China, South Africa and the USA. Sales are continuing to grow and the September quarter saw a $199,000 profit on revenue of $1.21 million.

On 10 December the company announced that it has licensed the distribution company, Zoono China International Trading Limited, to use its name and sell Zoono products to farmers, food producers and processors in China.

The distribution agreement is over a 10 year term and offers exclusivity in all animal health markets including aquaculture and food processing plants in China. There are minimum purchase volumes of NZD$3.1m in year one, including NZD$1m in instalment payments between execution of the agreement and 30 June 2020. Then NZD$4.6m in year two and NZD$9.3m in year three, and thereafter increasing by 10% per annum. Full payment is required for all product before it is shipped.

Overall, things are looking up for ZNO. Its market cap has cracked $100 million so I suspect that most of the significant share price gains have already happened. The time to get on this train would have been three months ago. Since mid-October it has climbed from 10c to a high of 89c and is currently trading at 62.5c.

That being said, this is obviously a very news driven stock, so more good news could well send ZNO much higher.

big.chart-ZNO.gif
 
barney said:
100% agree Greg ….. Definitely on the watchlist … Cheers:)
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ZNO making more ground today, hitting a high of 71c. Volume is up significantly today and it is looking bullish. Looks like it might be getting ready to take a crack at its previous high of 89c from 31 December.
 
greggles said:
ZNO making more ground today, hitting a high of 71c. Volume is up significantly today and it is looking bullish. Looks like it might be getting ready to take a crack at its previous high of 89c from 31 December.
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Certainly an interesting one this.

After a bit more fundamental research on the Co. They claim their technology is proven (which it could well be), but as an "investor" I'd like to see more emphasis on those proven tests, to generate more credibility.
The Company is basically run by entrepreneurs/sales people. Given their job is promotion leading to sales, a small red flag arises without the above verification. Sales people telling you "the truth" should always be questioned.

Trading wise, it could well move higher given the "chart" interest, but until "sales" figures etc are backing the rhetoric, I suspect it's now a punt in the short term especially given today's high range up bar.

Two consecutive sharp rises on a fledgling small cap ($100 mil MC) with not a lot of cash in the bank makes it:cautious: for me.
 
Short term play based on the coronavirus scenario, therefore tipped for the Feb stock tipping competition.

Zoono's products are heavily aimed for personal hygiene and disinfecting which could see a sharp rise in sales due to the global threat due to coronavirus, which is upgraded to a Global scale in terms of health risk.
 
aus_trader said:
Short term play based on the coronavirus scenario, therefore tipped for the Feb stock tipping competition.

Zoono's products are heavily aimed for personal hygiene and disinfecting which could see a sharp rise in sales due to the global threat due to coronavirus, which is upgraded to a Global scale in terms of health risk.
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Up 11.8% today aus_trader, a wild ride ahead no doubt, good luck in the competition, the logic is compelling
 
Padowan said:
Up 11.8% today aus_trader, a wild ride ahead no doubt, good luck in the competition, the logic is compelling
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Thanks Padowan, I seem to have a bit of luck with picking stocks benefiting from short term disasters etc. This time on ZNO benefiting from coronavirus and previously I won a monthly competition picking DroneShield Ltd (DRO) when the share price shot up due to a drone attack in the Middle East.
 
aus_trader said:
I seem to have a bit of luck with picking stocks benefiting from short term disasters etc.
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Mere coincidences?. Me thinks not.
Me thinks that you are an international man of mystery.
Covert ops n all... :roflmao:
Let me guess, your currently in Germany?
Extract from this morning's Ann Zoono...
"The results from the German laboratory testing it against the current strain of coronavirus are
expected imminently."
Tomorrow morning Aus? or Thursday?
F.Rock
 
barney said:
Pleased for your pick Aus-T:)

I get the feeling there are a lot of punters who will get burned on this. High of $2.44 earlier today just doesn't look sustainable ….

Could turn into a pass the parcel trade really quickly.:eek:
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Didn't think in my wildest dreams that it'll go this far this fast, otherwise I would have bought at least a small parcel of shares to have a punt on ZNO ;)

frugal.rock said:
Mere coincidences?. Me thinks not.
Me thinks that you are an international man of mystery.
Covert ops n all... :roflmao:
Let me guess, your currently in Germany?
Extract from this morning's Ann Zoono...
"The results from the German laboratory testing it against the current strain of coronavirus are
expected imminently."
Tomorrow morning Aus? or Thursday?
F.Rock
Click to expand...

I do a bit of stock researching and that's how I came across ZNO which I thought might be well supported in the current global health threat environment.

As far as the insider knowledge... :speechless:
 
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