Borislav Tonev

Medizone International Inc (OTCBB:MZEI) Makes a Steady Climb

by Borislav Tonev April 17, 2014
7MZEI.pngIf you take a peek at Medizone International Inc (OTCBB:MZEI, MZEI message board)'s three-year chart, you'll see that the stock performance is not exactly the definition of consistent. There's been plenty of spikes both in price and volume, but the general direction has been south and the promising press releases that the company has issued over the years have had only limited effect on the ticker.

Now, MZEI seems to be in the middle of another surge. It started at the end of February and although there's been no press releases or updates since March 10, it still seems to be going strong. The cumulative gains amount to around 160% and over the last few days, we've seen some increased volumes as well.

Opinions around message boards are generally divided as to what might be causing the increased buying. Some people suggest that investors who know that something big is about to happen are jumping in while others reckon that the ticker is propelled by nothing more than favorable technical indicators.

Whatever the reason, MZEI's current run is proving to be much more consistent than the ones we've seen in the past. But will it continue?

In the long run, the stock's faith can only be decided by the company's business operations. In the past, things weren't going quite according to plan. MZEI spent too much time in the development stage and at one point, people started to think that they will never be able to commercialize the AsepticSure disinfection system.

Medizone proved the skeptics wrong a couple of years ago and the latest annual report shows that, at least in some aspects, they are doing relatively well. Here's a recap of the most important figures as of December 31, 2013:

  • cash: $81 thousand
  • current assets: $380 thousand
  • current liabilities: $3.7 million
  • yearly revenues: $379 thousand (a 68% increase year-over-year)
  • yearly net loss: $1.3 million (a 60% decrease year-over-year)

It's pretty clear that there's not a whole lot of cash and the liabilities are quite substantial. That said, MZEI did tell us in one of their latest press releases that they are moving closer to the commercialization of the AsepticSure products in the US which should give sales another boost. If they manage to cut down on the expenses, they might actually be in for a brighter future.

Until they show us conclusive proof that they're able to do it, however, MZEI remains highly speculative. Considering the risks 3GRNH.pngassociated with such stocks before jumping in is absolutely essential.

Cannabis-RX Inc (OTCMKTS:CANA) is another OTC listed enterprise that registered some significant volumes yesterday. It managed to shift more than $3.5 million worth of shares while its price shrunk by as much as 42%. GreenGro Technologies, Inc. (OTCMKTS:GRNH), on the other hand, bounced back by 37% while racking up a dollar volume of around $1.5 million.

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