Zicix Corp (ZICX)

[stervc]

Saveapenny, what’s key from that news…

This last piece in your post from the PR you posted is a ”fundamental” key as it reads:
http://finance.yahoo.com/news/Bederra-Corporation-Announces-iw-3082309930.html?x=0&.v=1
”… The Board of Directors will convene the meeting to discuss effecting an increase in the price per share to facilitate future mergers and acquisitions activities and enhance overall shareholder value. …

This means, in my opinion that the company is planning on buying back shares from the Float and retiring them back to the Treasury which would reduce the amount of Outstanding Shares (OS). The OS is used as the key denominator to assess fundamental valuation for a stock to earn a certain value of legitimacy through deriving an Earnings Per Share (EPS) as indicated in the basic formula below:

Revenues – Expenses = Income
Income ÷ Outstanding Shares = EPS

EPS x P/E Ratio = Expected Share Price

The beauty about this is that if you believe in what you are doing as a company and if you believe in the value of the several acquisitions you are about to close, then it would be in your best interest to buy back the shares at these levels because it would significantly enhance shareholder value thus enhancing the value of the shares that could be used by the company for leverage for further and greater acquisitions.

Example: Back when BEDA was at .0005 per share, to acquire a company for $1 Million would cost them…

$1,000,000 ÷ .0005 per share = 2,000,000,000 shares

If BEDA has stabilized at let’s say .02 per share, to acquire a company for $1 Million would cost them…

$1,000,000 ÷ .02 per share = 50,000,000 shares

This is a huge difference and would save the company more money in the short and long run by them simply buying back their shares and retiring them back to the Treasury. This is a strategy that most, if not all penny stocks should use.

v/r
Sterling