ZAP (OTCMKTS:ZAAP) On Its Way Down Again
ZAP (OTCMKTS:ZAAP) made an astounding 306.09% leap on Thursday, pushed up by an announcement that its Chinese subsidiary will be launching a new car. The ascent didn’t last long – the company lost approximately 2/3 of the high it had gained in the crash that followed in the very next trading session.
The news that pushed ZAAP up was certainly promising, although arguably not good enough to push the ticker so far up the charts. The truth of that opinion is now evident, as per ZAAP‘s horrendous crash on Friday.
- cash – $0.5 million
- current assets – $30.4 million
- current liabilities – $92.8 million
- revenues – $9.9 million
- net loss – $3.3 million
The Steven Schneider fiasco has also hurt ZAPP and shaken investor trust in the company. Said blunder was caused by the actions of a former officer of ZAAP, who attempted to take control of the company. Acting without ZAAP‘s authorization, Steven Schneider took possession of $0.85 million worth of inventory, which he then refused to return to the company. As a direct result, the retail car segment of ZAAP‘s business was closed and the company generated no revenues from it during the third quarter of 2013.
The company’s ongoing legal issues are yet another red flag for investors. On March 3, 2014, the Superior Court of the State of California dismissed some of the claims against ZAAP, but even so, the company’s still under legal pressure.
Thus far, ZAAP‘s had a depressing number of difficulties, but the list of issues the company faces just keeps going on and on. When added to ZAAP‘s legal problems, the company’s precedent for commercial disaster is certainly off-putting to say the least. ZAAP has had 284 refund requests for Zap Xebra by November 14, 2013, of which 247 were deemed eligible. This fact alone certainly speaks volumes of the company’s wholesale success so far.
As it stands, it’s a miracle the company didn’t crash further down on Friday. Perplexingly enough, it is traded up during today’s session.
Another company that crashed horribly on Friday and is on the rise today is Bitcoin Shop Inc. (OTCMKTS:BTCS). The ticker fell more than 45% during that session, but today it’s making a climb to the top of the charts again.