Fluffy has been on a long Cat Nap. Fluffy is still picking up the odd lot under 3.00/share. Fluffy had dinner last week with one of the long term shareholders of Zen. This is a gentleman that Fluffy has a great deal of respect for. Fluffy asked his friend for his opinion on the Albany deposit and his opinion on what the deposit is currently worth. My friend suggested a conservative value as it currently sits is worth an amount of a minimum of $200M.  

The reason Fluffy has respect for this gentleman's opinion is this: he has a way of taking a complex situation and simplifying it. He asked Fluffy how many shares are outstanding and round the number off. This produced the number of outstanding shares at 100M. He then suggested true value of Zen using only the value of the mine was 2.00/share. With the current SP at only 3.31/share he then suggested the market is only  putting a value of 1.31/share for the masks which are currently available, and all of the products and IP that Zen has in the pipeline, Covid Tester HVAC, Flame Retardent De-icer, EV batteries, Topicals. 

Fluffy asked him in his opinon what the current price of Zen should be. Without hesitation he suggested the current SP should be north of 6.25/share. Hearing his opinion this made Fluffy a very happy Cat. Fluffy asked him why the SP is currently at only 3.31/share? My friend paused for a second and replied, "primarily, market manipulation".

Fluffy was not shocked by his statement. Fluffy then asked how does "market manipulation" work. My friend suggested that some funds will short 10 stocks and hope they can make money on 7-9 of them. At the end of the day they still hope to make a profit using this method. My friend said that they play on the fear of long term shareholders losing faith and selling their shares on fear the SP will continue to fall further. He told me it becomes a psychological game and under normal circumstances some long term shareholders will sell their shares and that is how those shorting shares make a profit. Fluffy asked what type of methods will those who short stocks use to cause fear in the price of a stock.

My friend then suggested companies that short stocks will place false and misleading articles on the internet, they will have associates place posts on forums like this one that are initially fairly positive about companies, then over time switch to quasi negative comments about companies they have shorted, then go completely negative in their comments. Fluffy then asked if there are 2.6 million shares of Zen being shorted can they be covered. His reply was "only if the long term shareholders sell their shares can the shorts cover their position". Fluffy suggested that the Zen shareholder base is extremely loyal to the company and what will that loyalty mean to those who have shorted Zen? My friend told Fluffy, "the shorts will be screwed". 

Fluffy now into his third glass of red wine asked if there has been Americans purchasing Zen shares in the last month. Fluffy's friend replied "yes, there has been Zen shares purchased south of the border, not just in the last month but also in the last 9 days." Fluffy finished his glass of wine and being a wise old Cat, smiled and let his friend pick up the dinner and wine bill. Cheers, Fluffy the Cat