About Zanett, Inc.
Zanett is a leading business process outsourcing (BPO), IT enabled services (ITES), and information technology (IT) consulting firm serving Fortune 500 corporations and mid-market organizations in Healthcare, Life Sciences, Manufacturing & Distribution, Retail, Gaming & Hospitality, and State & Local Government.
Zanett helps organizations align business objectives with outsourced technology-enabled services to create Real Enterprise Value. We serve the Fortune 500 and mid-market organizations in Health care, Life Sciences, Manufacturing & Distribution, Retail, Gaming & Hospitality, and State & Local Government with solutions ranging from business consulting as well as custom business solutions that integrate and implement Oracle's full suite of product offerings Oracle, JD Edwards, PeopleSoft, Seibel, including infrastructure technology and managed services together with associated Oracle Fusion technologies. Zanett employs over 225 professionals in North America and Asia with offices in Atlanta, Boston, Cincinnati, Indianapolis, Jacksonville, New York City, North Palm Beach, and Manila. For more information please visit http://www.zanett.com/ or http://healthcare.zanett.com.
Here is the Press Release they put out today, and was the reason for the massive move up of the share price of their stock:
http://zanett.investorroom.com/index.php?s=43&item=74
Record Contracts Signed in Jan + Feb for Zanett:
Over $12 million Among 42 Customers - Healthcare Focus on Target:
NEW YORK, March 4 /PRNewswire/ -- Zanett, Inc. today announced that it has set an in-house corporate record for contracts closed in the months of January and February 2010. Between the two months, over $12 million dollars in new business has been closed. This amount of revenue is comprised of 42 different customers, with the largest customer being responsible for a $4 million mandate.
HEALTHCARE FOCUS – SOFTWARE PACKAGE
Healthcare was by far the biggest segment of contracts signed for the past 2 months. Zanett recently announced that is has jointly developed a CODS software package (Clinical Online Delivery System) to support standardized, evidence-based order sets at the point of care, arming doctors and clinicians with critical information to improve medication safety and patient care. With this solution, physicians and nurses will be able to spend more time with patients and less time on the charting required of them in creating paper records.
BUSINESS IS BOOMING – U.S. CAPITAL SPENDING UP
Dennis Harkins, President of Zanett, said, "All I can say is... Business is booming...! Throughout the US, corporations are currently hesitant about hiring individuals, due to unknown and unfunded mandates from Washington DC, so they are spending their money on increased capital expenditures. For any corporation out there, Oracle ERP and other IT spending are a natural beneficiary of a reduction in labor force. Here at Zanett, we have 21 great people in our national salesforce, and we are currently accelerating full speed ahead, firing on all 12 cylinders."
IN-HOUSE RECORD CLOSINGS – OLD RECORD TO BE BEAT
Last quarter (Q4 2009) was a record quarter at Zanett as far as contracts closed, with over $13.7 million signed. Zanett management believes that, at this rate, this quarter (Q1 2010) will easily overtake last quarter and be a new in-house quarterly record.
One reason it moved up so much today is the fact that it's O/S (Outstanding Shares) and it's Float are very small. It's O/S is only 8.74 million shares, and it's Float is an amazingly low 3.67 million shares. Today, it traded more than twice it's Float! And it's average daily volume is only 16.2 thousand. Today it traded 8.1 million shares! That's a huge difference between 16.7 thousand, and 8.1 million shares traded per day.
Here is a screen shot of the fifteen-minute chart of ZANE for today, that shows it was running with huge volume behind it.
And here is a six month-daily chart that shows it ran flat the entire period until today's news sent it into orbit. If you expand this chart out to a one year period, it looks very much the same. It ran totally flat for over a year until today:
If we zoom in to a one month-daily chart, you'll see the huge volume spike from today, and all of the technical indicators are shooting straight up:
Congratulations! to all of the shareholders of this company. I've never heard of ZANE before today, but it is most certainly on my radar now!
The BIG Question now is: What will it do next? While it was a wonderful day for shareholders of this company that owned this stock, entering at this time can be a tricky proposition IMO.
Will it keep running? Will it pull back and give up half, three quarters, or almost all of today's gains? I'm sure we'll find that out tomorrow and next week.
This stock is traded on the Nasdaq exchange, but since it's under five dollars per share, it can't be Shorted using most U.S. online brokers. And to be honest, Shorting this stock doesn't seem like it would be a very good idea after the great news it put out today, and the stellar rise in the stock's share price.
If it breaks above today's intraday high of $2.50 tomorrow or early next week on high volume, this one may still have a very good chance of going higher. If the body of tomorrow's daily candlestick closes more than halfway down of the body of today's candlestick, that is usually considered to be Bearish.
When a stock runs flat with hardly any volume for over a year and then something happens like we saw today's PR and huge volume spike, that is usually a very Bullish occurrence. It makes a lot of traders and institutions sit up and take notice.
The next few trading sessions should be very interesting, and I will be keeping a very close eye on this company from now on.
Here are some of the other news articles from other stock market news sites that are talking about Zanett's impressive move up today:
The Strange Case Of Zanett Inc.
http://blogs.barrons.com/techtraderdaily/2010/03/04/the-strange-case-of-zanett-inc/?mod=yahoobarrons
Zanett Volume Spikes on Contract Bookings
http://www.thestreet.com/_yahoo/story/10695831/1/zanett-volume-spikes-on-contract-bookings.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Record Contracts Signed in Jan + Feb for Zanett; Over $12 million Among 42 Customers; Healthcare Focus on Target
http://finance.yahoo.com/news/Record-Contracts-Signed-in-prnews-1972871742.html?x=0&.v=1
I'm sure there will be a lot more chatter about this company tonight. I just added a Google Alert for this stock, and I will add any more news about this as I see it.
But one thing to think about is this news release put out yesterday, that states ZANE is about to receive a de-listing notice from the Nasdaq exchange for not meeting it's minimum share price of one dollar per share for more than 30 days.
http://finance.yahoo.com/news/Zanett-Inc-Expects-to-Receive-prnews-3282971503.html?x=0&.v=1
BACKGROUND INFORMATION
On September 17, 2009, Zanett, Inc. (the "Company") received a letter from Nasdaq notifying it that the bid price per share for the Company's common stock has closed below the $1.00 minimum bid price requirement for 30 consecutive trading days and that, as a result, the Company no longer meets minimum bid price requirement for continued listing set forth in Nasdaq Listing Rule 5550(a)(2). No breach of any other listing requirement was listed in the letter.
Pursuant to Listing Rule 5810(c)(3)(A), the Company had 180 calendar days, or until March 15, 2010, to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Company's common stock must close above $1.00 for a minimum of ten consecutive trading days. However, Nasdaq may, in its discretion, require the Company to maintain a minimum closing bid price of $1.00 per share for a period in excess of ten consecutive trading days (but generally no longer than 20 consecutive business days) before determining that the Company has demonstrated an ability to maintain long-term compliance with the rule.
Whatever happened today to make the share price rise above the one dollar minimum worked, but now they have to keep it there for thirty days to avoid de-listing from the Nasdaq exchange. This is so interesting in light of this last news release, I feel that more investigation seems appropriate.
Happy Trading,
zigzagman
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