“the graphite has been recently sent out to various interested parties and end users. do you think they (zen) would sent out sub-par graphite to be evaluated? i think not, i think the graphite characteristics and purity will found to be stellar” Lowsignal
With the finish line in sight (PEA and Buy-out), the market is again testing our resolve to hold this position in ZEN, but it isn’t all ZEN.
ZEN itself has retraced 62% from last summers high, for the technical Fibonacci chartist out there and 2014 has been a dismal year.
We also are in a Sector (Materials) and Index (CDNX), that if you haven’t noticed, has been getting pounded since the beginning of September, coinciding with USD strength (sidenote – US dollar strength due to better Jobs Reports and Economic outlook? Questionable imo for 4 reasons, 1. Labour Participation is at a 36 year low, 2. Median Income is down $4K since 2008, 3. 47% receive some form of social spending from US Gov’t, 4. 1 in 5 US Households are on Food Stamps)
Just saying, all is not as rosy as the Biz Media is making things out to be. Maybe the US is the best house in the poor neighbourhood.
Anyways, CDNX has fallen off a cliff since beginning September, and is like 12 pts (872.15) from a 3 year low 859.31, with Bearish Price objective of 720 on the P&F chart. Not good for the juniors in Materials on the CDNX, ZEN included.
http://stockcharts.com/freecharts/gallery.html?$CDNX
So are resolve to hold ZEN is being tested, and the fundamental reasoning which made us buy-in is again being pressured and under threat by the Market Technicals in proving us wrong?
On the weekend I was asked, “Why should I buy ZEN?”. My answer, “Due Diligence”.
Have faith in your Due Diligence and the courage to Hold your position through further Market Weakness. The weakness is in the Market not ZEN, but at these prices, the market is gifting you shares in ZEN, if you can add to your position.
The PEA will start the End-game, which this market will no longer be able to contain.
Cheers, Mark
