Zealous, Inc. (PINK:ZLUS) Jumps Up On the Next Promising Project

Investors are interested in Zealous, Inc. (PINK:ZLUS) again, following the persistent PR for the company’s only product still having theoretical chances to gain some revenues. The under $1 stock recorded new peak on large volume spike.

The stock of Zealous appears to be strengthening the started uptrend after a short term pause and gained again 77.14% on Friday. Large daily volatility and a volume burst after a long period of almost no trading activity, accompanied by 50-day moving average going up, signaled to investors the continuance of the uptrend. The closing price of $0.0062 was a new peak for this year and it followed intensive trading with 207.5 million shares traded, representing 15.8 time more than the previous day.

Although there is no data for Zealous having paid for promotions, their stock has been constantly mentioned in investor alerts, promising daily growing revenues and seeing the breakout coming. A press release on Friday, speaking of the new “start of the art” social network platform of Zealous also enhanced the price rally. That latest social networking technology, and as it seems the only product of Zealous having some revenue outlooks, was said to blow away all established competitors and to launch a real furor with its innovative features among its users.

Looking at the operating history of Zealous, disclosing a number of previous bankrupt projects ranging from investment banking to adult health care products, the dubious PR cannot substantially improve the highly questionable future operating success of Zealous and all of its subsidiaries.

Current financial results will not be filed soon, but what has been filed so far reveals the dire financial condition of the company. After the financial services and the consumer mortgages subsidiaries were shut down in 2008, the company established last year the Health and Wellness Partners Inc. to distribute sexual performance pills and energy drinks. Though, shortly after the first online purchase of the Surge for Women product, Zealous got a visit from the FDA, who declared the product potentially harmful and recommended distribution to be canceled. Following plans to sell the subsidiary were filed middle of March.

Latest 10-Q filing provides investors with further interesting facts. Zealous has often been sued by former directors, creditors and employees, having various claims on the company relating losses on equity and unsecured debt investments, violations of securities laws, misleading company presentations, non-payment of wades and so on. Urgent working capital insufficiency and no more access to bank financing, since default on most of the debt in September 2009, only add to the extremely high dilution risk of Zealous Inc.

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