As a brand development company, ZA Group Inc. (OTC:ZAAG) acquires direct to consumer (DTC) brands that deliver captivating fashion products. For years, ZAAG has developed these brands and positioned them for further growth. Recently, the company is seeking to branch out into other products with a variety of celebrities in order to capitalize on different lucrative industries. As the company teased upcoming acquisitions and further expansion, ZAAG witnessed a 115% surge overnight – positioning it on the list of high volume penny stocks this week.
ZAAG Stock News
On February 23rd, ZAAG announced a definitive agreement to undergo a major acquisition – which the company has been working on for several weeks. The acquisition is expected to close in the coming days now that the lawyers are finalizing the agreement to execute the deal. Pursuant to the terms of the agreement, ZAAG will acquire 60% of a yet-to-be-disclosed large-scale company. Investors’ anticipation has already driven the stock to new highs as management highlights the upside potential of the acquisition in an essential and fast-growing industry.
With this acquisition almost finalized, the company is already paving the way for more growth as it recently announced upcoming expansion plans and additional lined up acquisitions. As of February 25th, ZAAG tweeted its ongoing efforts to launch a new joint venture to support its ongoing plans.
To sustain this growth, the company is keeping up with new industry trends. In fact, ZAAG recently announced that its subsidiary – NFID – will start accepting cryptocurrency as a payment method on its website. As an active lifestyle brand focused on the production of apparel and accessories, this initiative could facilitate further collaboration with artists and influencers all the while bringing credibility to the brand. By accepting Bitcoin and Ethereum as a form of payment, NFID is set to establish a competitive advantage over its competitors as early adopters of cryptocurrency in this online business model.
Throughout all these efforts, ZAAG is placing great emphasis on transparency and has assured investors it will release updates regarding its upcoming acquisitions and deals shortly. The company has also highlighted its commitment to acquiring entities that complement its existing vision for sustainability in wellness and direct to consumer products.
With the management invested in expanding the company’s business, investors are bullish ZAAG could be set for another major up-run if the company delivers on its expansion promises in the near future. With a market cap of only $2.7 million, ZAAG has a lot of room to grow as the company releases more news regarding its ongoing and future plans.
@stockballa is bullish ZAAG could see another run-up in light of the company’s upcoming acquisitions and expansion plans.
Following its run-up, ZAAG is now trading at $.0015 with an immediate resistance at .0016. The stock shows a primary support at .0010 and a secondary support at .0007. Accumulation is on a major upward trend and the MACD is bullish to the upside. Similarly, the RSI is at 73 – indicating the stock is extremely overbought and positioning it among the list of high volume penny stocks.
These indicators clearly highlight investors’ increasingly bullish sentiment. The major spike in accumulation could be largely due to investors’ excitement over the company’s future plans. After it spiked, ZAAG is now trading near its resistance and the RSI is indicating it is extremely overbought. However, bullish investors could secure a starter position and continue to average down on their investment as the RSI cools off.
ZAAG Stock Forecast
Considering the company’s plans to acquire new companies and launch a joint venture, ZAAG has the potential to become a profitable long-term investment. Given the recent surge following the announcement of the company’s future plans, it is no surprise ZAAG is quickly climbing up the list of high volume penny stocks this week. This increase in buying activity reflects a rise in bullish sentiment in light of the management’s ongoing expansion efforts and promising acquisitions.
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