Saturday, June 25, 2022

ZOOMPASS HLDGS INC COM USD0.0001 (POST FWD SPL(OTCMKTS:ZPAS) Still Buyer Beware  

ZOOMPASS HLDGS INC COM USD0.0001 (POST FWD SPL (OTCMKTS:ZPAS) finally bottomed out last week after numerous organizations wrote about the inflated price due to promotional activity. The OTC contacted the company about the promotional activity and the skull and crossbones still exists next to their name on their company profile. Don’t expect the Caveat Emptor tag to go anywhere anytime soon, since this stock was literally nonexistent and was at one point trading millions of shares. There are seemingly multiple lawsuits in progress against securities violations on behalf of investors.

According to company materials, Zoompass is a financial services company that provides businesses with solutions to help digitize financial transactions. The company offers prepaid debit cards, member reward systems and an electronic payment platform that enables businesses to provide their customers with a white label mobile wallet (I will go into more detail below).

ZOOMPASS HLDGS INC COM USD0.0001 (POST FWD SPL (OTCMKTS:ZPAS) has flooded the wire with peppy press releases, but most of them hinge on non-specified numbers or information. For example, the press from late May about a virtual card for Latin America quoted from Statista, a statistics database rather than from any company sales or projected growth estimates. See below.

 “Zoompass plans to expand the program to the rest of LATAM, as well as to other parts of the world that are experiencing the same difficulties purchasing US products online. Statista (www.statista.com) provided statistics on the size of the e-commerce market in Latin America with sales in 2016 at $57 billion USD and projected sales in 2019 to be $84.75 billion USD.”

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Citing a statistical database is not a crime. It is just not substantial data that should be used for sales projections. ZPAS and its promotional advertisers worked hard to stoke the fire.

ZPAS also seems to be in a little bit of everything. Zoompass says that it enables businesses to provide their customers with a number of open loop card choices including, gift card, incentive cards, check replacement cards and online virtual card accounts. The company also claims to provide advanced mobile technology, enabling businesses to provide their customers with a white label mobile wallet solution, like Zoompass, with the ability to manage their card balances, bill pay, transfer funds and perform card to card money transfers in real time using their mobile devices. Zoompass’s mobile device division helps carriers and mobile device manufacturers integrate the financial platform technology into their offerings.

However, and this is a big “however”, the company has released decent financials. The company reported net revenue of $254,683 and a gross margin of $37,659. This means that the company’s revenues are up by 191% in the first quarter of 2017 as compared to the same quarter of last year and 290% up as compared to the quarter ended September 30, 2016. Rob Lee, CEO of the Company, said:

“We are extremely pleased with the direction the Company is headed and believe it is a direct result of the efforts of Zoompass’ employees and business partners. We believe the launch of our new revenue pillars, the continued traction across our existing revenue pillars, as well as potential synergies across our financial solutions offerings, will have a positive impact on the Company’s results and ultimately shareholder value.”

ZOOMPASS HLDGS INC COM USD0.0001 (POST FWD SPL (OTCMKTS:ZPAS) is still buyer beware, but maybe the rise over the last few days is a sign that analysts were overly harsh. I doubt it, but anything is possible. The stock is currently trading at 1.38, which is still a +600% change from where it was in January. I would steer clear. For continuing coverage on shares of $ZPAS stock, as well as our other breakout stock picks, sign up for our free newsletter today and get our next hot stock pick!

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