I can't believe that this volume was due to smaller individual investors. Must be several larger fund investors.
If ZX is still looking at going private, the next logical move would be to show bad earnings for the most recent quarter. However, the larger shareholders will be looking at actual sales to gauge potential value.
ZX may have already posted a worse that normal manipulated earnings/sales for the 3rd quarter. If so, then any slow to be reported sales numbers from the third quarter will have to be posted this quarter.
We could get lucky. The chairman may realize that a much higher stock price will be good for him, and he may conclude that he will win big by not doing much of anything.
I would have to think that fair value for this business is at least $5.00 share.
There is no question in my mind that there was the manipulation of the stock both in terms of quarterly report and the buyout offer. However, the buying you are referring to could be by one or more associated culprits at bargain prices and if so, there are not many shares left that does not belong to the insiders. They could just buy the rest with a cash offer. On the other hand, it may turn out as you have indicated since they took out much of the retail (several million shares) at bargain prices. I have taken out nice profits in two round trips but still hold some shares awaiting the final outcome. During AH it closed at $3.10. You seldom go wrong if you follow the Fat Cats.
ZX is a NYSE listed stock. If this gets taken private at at some lowball price, the remaining fund owners and private investors would have good legal recourse if they can prove fair value to be higher than buyout price. Case would have to go thru U.S. courts. ZX would get dragged thru the mud.
Even though I feel confident about the outcome, I did sell 40% of my position in December.
You never know what kind of antics could materialize?
Without problems, ZX is worth $5.00.
If ZX stays public, with China/Asia sales growing 15%+, share price could see $10+ later this year.
If we get a green light with ZX, (improving sales leading to higher earnings, and a no private take over), then holding ZX, would be the right thing to do,