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Re: MDA post# 77300

Thursday, 02/15/2024 4:04:45 AM

Thursday, February 15, 2024 4:04:45 AM

Post# of 87007
MDA "Let's be real, with the all the "news" that these tickers have released, in 2020-2021 they would have gone absolutely parabolic. Yet, it simply has not happened, at all."

I suggest we deal with SPZI. I think there are several reasons why the pps is where it is despite good news being presented every week. One reason is that those who buy otc stocks are mostly very short-term in their approach. They want the pps to explode and often lose their patience if that does not happen. The pps of SPZI soared to 1.21 cent some weeks ago but has been trading between about 0.52 cents and 0.89 cents since then. Good news only has short-term effect on the pps it appears. Why would an otc-speculator expect the pps to soar now after having noticed that good news does not have much effect on the pps?

It is worth noting that there is no heavy selling of shares in relation to the float of more than 5,000 million shares. The pps does not rise because there is so little buying.

From a fundamental point of view the shares are now very cheap if the fully executed contracts are real. The stock market assumes that there is a very high risk that this is not the case. It hardly increases credibility when pumpers do the best to mislead the stock market. They claim from time to time that the profit margin on contracts that are very big is about 18%. Some use a p/e ratio in relation to this profit margin. The truth is that 18% is an assumed gross profit margin. We know nothing about the net profit margin, which is what matters. The fact that such strongly misleading information is communicated by pumpers I guess leads to a high degree of distrust. There is light buying because it is impossible to be reasonably certain what the real state of affars is. The latter relates to investors who might buy the stock for the longer term.

But if we get quarterly reports in some months we will see how the company is doing in practice. If the numbers of achieved net profits are good I expect the stock price to be gradually adjusted to these facts.