Petar Ilievski

Medizone International Inc(OTC:MZEI) And the Next Quarter

by Petar Ilievski June 15, 2011
MZEI-logo.jpg"We are a development stage company engaged in research into the use of an ozone based fogging mixture as a disinfectant." - an extract from the latest Medizone International Inc.(OTC:MZEI, MZEI message board) 10-Q statement. Most penny stocks share the first part of this sentence, most of them somehow inspire traders with it, who pray on the one day when production would begin. Yet, a few enterprises have such a long history of operations. MZEI-ALL.jpgMZEI-15.06.11.png

This January, Medizone celebrated its 25th birthday. A quarter of a century of operations, and still a developing status. The session yesterday closed at $0.2 per share. More than 500k shares exchanged hands on June 14th,2011. Sixteen years ago, on June 30th,1995  more than 700k shares exchanged hands. The session that day closed at $0.16 per share. Back then, Medizone International was also a development-stage company with nine years of experience in the business. So, a logical question might come to mind - if the stock price today is the same as 16 years ago, is there a guarantee that it will go up ever?

A logical question, especially having in mind that most penny stocks start way above $1 and crash down to sub-penny levels. Well, this one did too back in 2005, and it took a few years before it recovered to above $0.01 per share. So, what is on file up-to-date. According to the latest 10-Q with an end date March 31st ,2011, the figures come down to:

  • $195 in cash; 
  • $264k in total current assets;
  • $3.4 million in total current liabilities;
  • $25.3 million in accumulated deficit;
  • $0.0 in revenues;
  • $133k in revenues(January,1986 - March,2011);
  • $505k in net loss;

Not exactly inspiring. A counter-point is definitely needed, and the fact of the matter is that one exists. Dates back from April, and is a press release concerning the official launch of a company product. The official time set for this launch - in August this year, during the FIME Miami medical expo. So, does this mean revenues are on the way? 

The above question is yet to find its answer, but one thing is for sure - by the time a person celebrates its 25th birthday, it is usually clear whether it will swim or drown over time. In the case of MZEI, it is still not clear, as the proper term could be "floating". Yet, it might be high time for this to change. Whether this enterprise would swim up or sink is yet to see.

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