Zion Oil & Gas Inc (ZNOG)

[Stock]

The stock tanked after this list of market excuses was released Friday -- ZN price fluctuations have nothing to do with any of that:

http://www.sec.gov/Archives/edgar/data/1131312/000114420411046145/v231939_ex99-1.htm

...This past week, similar to early 2009, we received a number of telephone calls and emails, with many callers asking the same question:

"I have been watching the fluctuations in the U.S. stock market and the movements in Zion's stock price. Please explain what is going on?"

We can't and don't comment on stock prices because... we really don't know any more than you.

However, it is clear that the past week in the U.S. stock market has been 'historic'. The gauges that measure stock price volatility jumped to highs that have only been seen 5 times in the last 18 years:

(i) in September 1998 when Russia defaulted on its debt,

(ii) in October 1998 when Long-Term Capital Management collapsed

(iii) in August 2002 when WorldCom collapsed

(iv) in September 2008 when Lehman Bros. collapsed

(v) in May 2010 when there was a stock market “flash crash” caused by automatic computer trading.

I'll note that the U.S. stock market recovered from every one of those (short-term) problems.

Zion stock is traded on the NASDAQ which is a public market, so any member of the public or investment company can buy or sell stock, just as they wish.

We have no control over the Zion stock price in the public market; the stock price just reflects the actions of those trading that day.

However, we can assure you of two things:

(1) we do not believe that the purchases and sales are due to the result of any material information that we have not made publicly available.

(2) we are working towards long-term shareholder value and in the long-term, we believe, short-term fluctuations are irrelevant.

To quote Benjamin Graham (the major influence on Warren Buffet's investing style): "The stock owner should not be too concerned with erratic fluctuations in stock prices, since in the short term, the stock market behaves like a voting machine, but in the long term it acts like a weighing machine."

Meaning that true value will in the long run be reflected in stock prices.

I believe that we will ultimately surmount all problems, because we are applying a solid professional approach to our work and because we have deep and enduring faith in our work.

Jeremiah (32:17) understood much when he said: "Lord God... you have made the heaven and the earth by your great power and stretched out arm, and there is nothing too hard for you."