Nov 21

Could ZAZA Energy be a multibagger in future?

The post is about ZAZA energy. I believe this company could be one of the best perfomers going forward.

Its a stock in a very hard sector (Oil lately) with oil prices going down ZAZA also been moving down a lot.

1. If we look at insiders they bought a lot of shares here in 2013 and 2014 and this is a bullish sign, but not always right(insiders dont buy the bottoms always) but it gives you a good sign that they possible trust company and think it could go higher long term.

2. Oil prices now depressed but with COT showing that smart traders are now long oil heavy, we might see oil prices rebound heavy again from here 70-80$ per barrel.

3. If we analyse the chart , ZAZA has been a 190$ share in 2011 and in 2005 it was 375$. The stock is now down to levels seen in long time , at 3$.

4. If we look at charts we see a very bullish MACD divergence both on MONTHLY chart and WEEKLY chart both suggest that a possible bottom is close. If we look at past months we had the largest volume seen ever traded in the stock. Did people sell the bottom or did some guys “buy” after a drop from 375$ to 3$ ? I guess smart guys have been buying…..

5. Watch the stock – if it starts a hard run from here into 2015 there is a very good chance this could be a multibagger potential in future from here. That means 2015 could be a VERY good year for ZAZA energy.

Either way , the trade would be to hold ZAZA long term with a stop loss at the lows = 1.66$ as long this holds , ZAZA could give you tremendous upside %.


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