Well, I don't really care if I'm Hub Leader Or President, I simply wanted to start a board for ZPP which I feel has long term fundamental growth prospects in an industry that is garnering greater attention and business.
I recently took a stake in ZPP. I saw it as a nice way to complement my oil and gas holdings - a bit of a hedge, I guess. With the growth being shown, patient investors that don't mind the volatility, I feel, will be rewarded as the fundamentals continue to improve.
Looking at Q1 financials clearly shows that growth:
* Revenue up 261% from $1.8 million to $6.5 million
* positive net income of $269 922
* Sales volume up 263% from 6 458 bikes to 23 413 bikes
* more than doubling of gross margins, up to 10.2% - which should continue to improve with increased volume
It's also worthwhile noting that at the end of the quarter they already had orders for 152 000 ebikes and were confident to meet or exceed guidance of year or over 260 000 bikes. In '07, entire yearly production was 60 000 bikes! The new manufacturing facility (initially capable of producing 600 000 bikes) should be running in March of '09 thereby allowing significant ramping up of production again to meet demands.
On top of all this, the co. currently has about $37 million in cash and equivalents (approx. $0.50 per share) to further finance growth.
With more than 1.3 billion people in China alone, and the vast majority of those being "lower class", the most accessible, affordable and environmentally clean mode of transportation is bikes and ebikes, and ZPP will participate in supplying this growing worldwide demand. ZPP investors will see the results of this demand with further growth in financial fundamentals which will eventually be reflected in share price appreciation.
Have a great day!
