ZA Group Inc (OTCMKTS:ZAAG) had a difficult time in the markets this past Friday as its stock tanked by as much as 20% amidst heavy selloff. In light of such a sharp decline, it might be a good time for investors to take a closer look into the announcement made by the company on Friday and figure out if the decline could in fact be an opportunity.
Trading Data
On Friday, ZAAG stock slumped 20.42% at $0.0057 with more than 30.10 shares, compared to its average volume of 2.31 million shares. The stock has moved within a range of $0.0050 – 0.0107 after opening trade at $0.0085.
ZA Group Inc Announces Acquisition of Forever Brands
Last Friday, the New York based company announced that it had completed the acquisition of the company Forever Brands. In this regard, it should be noted that Forever Brands is currently best known for owning the license for the Catherine Zeta-Jones brand and is looking to develop an online women’s shaving regimen.
Hence, it could turn out to be a shrewd acquisition for ZA Group. ZA Group is a holding company and is primarily involved in the acquisition of companies which are undervalued by may have significant potential for growth. The acquisition of Forever Brands is a similar move from the company and although the market did not seem impressed, it remains to be seen how the company progresses with this acquisition. At this point, it might be a good move to keep the stock in your watch lists.
Key Quote
“The team at Forever Brands have been working for the past year on developing the formula’s, the handles, media marketing for our launch and much – much more. I believe this is such a robust and underserved market. Our subscription-based model gives us an incredible opportunity and we look forward to tremendous success the ZA Group,” said Jeffrey M. Canouse, CEO of Forever Brands, Inc.
Technical Data
ZAAG stock is trading below the 50-Day and 200-Day Moving averages of $0.0074 and $0.0095 respectively. Moreover, the stock is below the 200-Day moving average of $0.0160. The stock is down 30% in the past 3-month.
