(1) The company has low outstanding shares and low float. The OS is 1.2B. I bought 2M shares today. That means that I already own 1/600th of this company, in comparison with all the other investors IN THE WORLD. In other words, there are only 600 other investors with this many shares (or the equivalent - i.e. 4 investors with 500 shares, 10 with 200 shares, etc).
(2) The company is structured so that DILUTION is not in the interest of the CEO. The CEO is NOT the owner. The CEO, Adam Engel, owns less than 1% of the Class B stock, and he only owns 44K shares of the common stock.
The CEO is an EMPLOYEE, and his employment contract states that he gets paid a relatively low salary for a CEO of this type ($120K). His "big payout" comes in the form of a STOCK OPTION to purchase 3.6M shares for .01 a share.
Well....that is only beneficial if the stock goes WAY UP. If the stock price (PPS) goes to $.50, he can enact the option and essentially get a payout of $1.8M. If the stock price is $1, he gets $3.6M dollars....and so on.
In other words, the company has been structured so that the CEO only gets a big payout if he makes the company SUCCESSFUL, and if the STOCK PRICE goes through the roof!
That is simply AWESOME to an investor!!!!!
(The actual owner of the company is someone else, who owns 80% of the CLASS B stock, and he is not the CEO of the company. He is apparently a silent investor who must approve all actions - so it is unlikely he would allow the people running the show to do anything inappropriate with his money. This is perfect!)
Also, his stock option can only be enacted at a rate of 100K per month - so it will take him 36 months (3 years) to get all of his stock. Not only does he have to MAKE the company successful, but he has to KEEP it successful for at least 3 years!!!
(3) Unlike other penny stocks, that are built on promises (seeking FDA approval, promise of a future launch date, etc)...ZVTK already has a tremendous product with the ability to be sold in every household and building in the world. It is a REAL product that is already REALLY selling.
You KNOW that this company has sales figures, and you KNOW that this is going to show tremendous positive action as soon as the report is released.
The report is due FEB 15, but I have heard that they are going to release the report as early as the end of January/beginning of February.
(4) Because the CEO only makes his big payout by keeping the stock price UP, the company has a built in protection from over dilution, which occurs with so many penny stocks. The CEO needs to get the PPS as high as possible - therefore, he is NOT going to dilute the stock for quick cash (which many penny stocks do). If he did, this would only benefit the owner, and not him!
SO...in other words, the company is structured so that the CEO makes sure that the company is protected from the owner, and the owner makes sure that the company is protected from the CEO!!!!
This is probably the best LONG penny stock I have seen maybe ever.
Charts show it going between .0075 and .011....but this should not be a big concern, because this stock is going to have to go THROUGH THE CEILING before it is successful for the CEO!!!
LONG AND STRONG!
The facts were taken directly from the 10Q and the 10K - however the decisions on whether or not this is a good stock is all in my opinion only, and I invite everyone to do good due diligence before investing.