3SOF

Well it held up......
What a week...what a day....

This is a great post I found on YAHOO HOM message board for ZENX.  A must read:

http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=1606042352&tid=hom&sid=1606042352&mid=15206

Shootingstar, great info.

I read the post and it should be pasted here for full review (as the recovery work winds down, it will turn into reconstruction and renovation work like the post said...I see good potential for ZENX/Aduddell Roofing/Carothers Construction joint venture):

"But I worked in roofing when I was younger, specifically re-roofing. Re-roofing is the highest earning business in roofing next to commercial which explains why ZENX did only 2% of their revenue last year in new residential roofing and target re-roofing+commercial instead.

As a longterm hold, Zenx WILL go after commercial jobs after the "blue roof' contract expires, unless they atempt to cover Rita damage first.They will also re-roof in the Mississipi areas and think about this,

Most often homeowners are looking to get their home fixed immediately and do not care who does it just how soon it can be done, as they are not paying for the job anyway.

Once they get their estimate and sign a contract the insurance company HAS TO PAY THE CONTRACTOR.

So, when these people return to their 'blue roofed' home to find an Aduddell Roofing sign in their yard with a pre-prepared estimate and contact information, who do you thing they will call? I would not be surprised to find out ZENX is shopping for commercial properties in L.A. and Ms. right now anticipating long term money.

In fact, the roofing company I worked for would often times take more jobs than they could handle and turn-around and subcontract the work to other companies taking less money but doing nothing except collecting checks.

Per Sq. rate in the Southeast is running $65.00 to $135.00 a Sq. on re-roofing depending on economic factors.

So look at it this way, a 10,000 sq ft roof or 100 Sq at $65.00 to $135.00 a Sq. If it were me, I would tackle Large upper-middle class homes as my main re-roofs in Ms. So if they in fact get say, 5% of the estimated 37,000 'blue-roofs' as 200 to 500 Sq. re-roof contracts for an avg per home of 300 Sq.

1,850 homes avg between $65.00 and $135.00 or $100.00 per Sq. x 300 $30,000.00

Lets HALF THAT NUMBER just for grins....

$27,750,000.00 in re-roofing work at 1/2

See what I mean?

2004 revenue 27 mil

2005 revenue 50, 100, 200 million?

Were not even talking Rita or commercial work here. We are talking 209 roofing crews on the ground right now though, if re-roofs' per crew every three days 1,850 homes = roughly 30 days to finish 1,850 re-roofing jobs AFTER the $60,000,000.00 'blue roof' contract.

GIVE me a friggin break man, ZENX will be at $3.00 as soon as people start running the numbers for real. I began calling old roofing buddies yesterday to let them know about this stock and they ALL agreed with my assessments and bought shares.

Go ahead do whatever I am not "pumping" for short term gains, I want and expect to get $5.00 a share before x-mas here."

Here's more info from Yahoo MB.  According to the first link below, ZENEX/Aduddell had 32 new jobs between January - June of 2005 totaling over $10 million BEFORE Katrina $60 million contract.  Once Katrina/Rita recovery work is done, they will resume their existing contract work AND new commercial/industrial/residential work (even if they subcontract out the work) = Millions more in revenue!!!

Revenue for this year:  $10 M + $60 M + (~$30 M for Rita?) + (~$20 M for post Katrina/Rita private work) = At least $100+ million.  These are solid numbers to think about.  ZENEX has low overhead, which means significant percentage of revenue is NET PROFIT for ZENEX to expand and grow.  I think ZENX stock has a lot of room for gains.

"They had $10M orders by Jun. So the post-Katirina orders add another $60M:

http://www.okcbusiness.com/news/news_view.asp?newsid=5501
http://www.globeinvestor.com/servlet/ArticleNews/story/BWIRE/20050608/2005060800 5837

Extract: "Shareholders re-elected Ron Carte as Chairman/CEO. It was reported that Aduddell Roofing, a subsidiary of Zenex International, has contracted 32 new jobs since January 1, 2005 in the amount of $10,380,000.00."

And their market cap is less than $70M. Their share price has been stable for two years before the current run up - indicating no manipulation on the stock.

ROE is great, business in pipeline is superb and should help manage the cashfow situation better. "

Consider this too.

President Bush got a black eye from slow response to Katrina.  He's been all over the media and traveling in person to ensure the mistake doesn't repeat with Rita.  He wants a good show with Rita, especially with his home state Texas.

He has already given orders to federal/state/local agencies (FEMA, USACE, DoD, Coast Guard, etc.) to better prepare for Rita and take advance "proactive steps" to respond to Rita's damage.

I believe US Army Corp of Engineers will once again use ZENX/Aduddell/Carothers Construction joint team, since they were and are very successful with "Operation Blue Roof" with Katrina.  Another USACE contract is a certainty, and of course, spike in ZENX stock price.

got out this morning at 0.94.(bummer near lowest point).  guess mm's playing games and i baited.  oh well, good luck to all still in.  looking for reentry here.

After selling earlier, bought back 10,000 shares this morning with gains.  Nice trade.

Thanks Julia, for posting this stock.  I'll send you an early Christmas present - just tell me and I will ship it to you, within reason, of course  .  If you want commission instead, I'll send you a nice commission  .  I am serious!  = share the wealth = My 10% donation check will be sent out as soon as I sell ZENX.  Prayers to those displaced by Katrina and Rita.

Good trading!

Many, many applauds to Julia.

I sold yesterday, but I will buy back.  There is a tiny gap around .90 that needs to be filled (significant?)

jp

Julia,

If you like instead, I can send in $300 donation in your name for the 1 year subscription for Premium Service.  This way both you and 3StocksOnFire benefit.

Let me know before end of September (that's when 50% discount runs out).

Once again, thanks for the ZENX post!

Here's an exerpt from September 20, 2005 Zenex press release about Katrina joint venture contract breakdown - ZENEX/Aduddell is receiving 80% of $60,000 million contract money:

"The Joint Venture was formed specifically for the purpose of working on the Contract to provide temporary roofing services to the Gulf Coast region. Pursuant to the terms of the agreement governing the Joint Venture, there are 3% of gross revenues set aside to pay for bonding and insurance and thereafter, Carothers will receive 20% of the remaining proceeds and Aduddell Roofing will receive 80%. Aduddell Roofing is responsible for all material cost, labor cost and management cost, which includes a fee of 16.96% to Oklahoma Development Group, LLC ("ODG"). ODG, an affiliate of the Company, was designated to manage all pre-event activities, labor, procurement, housing and administrative responsibilities associated with the Hurricane. ODG is a development and management company.

Prior to the contract, ODG facilitated the planning and readiness program, as well as the procurement of required Hurricane response items. ODG, along with Aduddell Roofing and Carothers Construction Company, prepared the required documentation that was submitted to the USACE."

Hey Livelife!

Very glad to hear u did well on ZENX, thats great ...I'm sure you did much better than me as i kept screwing it up..exiting it way too early...Twice!!...got to learn my exit points!

I'm so flattered, very kind of you to offer!!...but, I just happened to post a winner trade..got lucky, jut happened to be the first one to post it, there are alot of members that post awesome info on 3SF...so I'm feeling a little shy about being singled out...so many here deserve applause for all their contributions...many stocks I would never notice unless I saw them posted here

Congratulations to all who made money this week...have a great weekend


thanks very much,

julia

guys:

I am a newbie here and first time posting on this board. I have to say this is a very nice pick among all these OTC stocks. Looks very promising. I just started a college fund for my 8 months old daughter and can you guess which stock i bought?? Its ZENX! I was debating between many different stocks but i picked this one. Of course I am in for the long term hoping ZENX will be doubled soon and thus make my portofolio double  wish me and my daughter some luck!

Julia,

As you requested, I'll be sending out that check to your choice of charity. 

Keep learning the disciplines of stock trading.

Plan your trade and follow through.

Don't panic and don't be greedy.  Buy low (on dips) and sell (take profit) and don't stay too long on greed...

Good trading!

Very generous of you Livelife!

Quote from: LiveLife on September 24, 2005, 12:34:42 AM

Don't panic and don't be greedy. Buy low (on dips) and sell (take profit) and don't stay too long on greed...

Good trading!

Funny...I do the exact opposite of what ur suggesting not to do  ...ok...I am going to try it your way

thanks very much!

good luck to you!

julia

malam69,

I bought back ZENX only on a bet that hurricane Rita will do enough damage to warrant another contract from US Army Corp of Engineers.  If no more contract, then it will be another story with stock price.

As to entry and exit points of ZENX, thanks to Julia, it was a good buy at $0.45 - $0.90 if you sold at $1.40 down to $1.20 giving you a 30% - 100+% gain.

If you watched the volume and price drop the last two days, a lot of people took profit and/or sold on panic (price drop) yesterday and this morning.

As a rule, I try to buy on dips, so you have as much of a chance at gains.  An example was this morning when price dipped to $0.96.  I recommended to those that wanted to buy on another board at market opening to wait for the sell off and buy at bottom.  If you bought at even $1.00, you will have gained at the market close of $1.07.

Like David says, watch and study the stock.  If you don't, you will buy high and end up with a loss, and you may sell, before realizing a gain.

I have monitored Mutual Fund Managers buy/sell at Lycos I-Watch for some time and always wondered why they bought when everyone was selling (price drop) and sold when everyone was buying (price increase):  (Here's a sample link with VPHM as an example)

http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?ticker=vphm

What I learned from other "experienced and seasoned traders"  is that they watch and study the stock they want to buy and  buy when price dips and everyone sells on panic because the stock is going through a price correction or there is profit taking.  Then they sell before the stock peaks (no stock goes up forever) and take a modest profit.  Modest profit because especially with Penny stocks, if you are buying/selling a lot of shares, it's hard to sell all at once (I bought and sold 40,000 shares of ZENX the last few days, boy it took some time to sell all of it)  If you wait too long, you will be selling down while your orders execute. 

And you continue on with the buy/sell cycle.

David and many others here at 3StocksOnFire will help you narrow down the stocks and give you a lot of good information.  Don't jump into a stock without knowing why you should buy.  If you can't explain to someone why you are buying a particular stock, you should not buy that stock, at that moment.  Do the research.  At the very least, practice your trades...Do a virtual portfolio like at Yahoo finance where you can practice your trades without risking your "real" money.  Practice timing the rise/fall cycle of a stock enough times to be comfortable.  Learn David's 50/10 day moving average chart with volume, and read up on tons of good posts about the stocks by 3StocksOnFire supporters.

Remember, penny stocks are "volatile" and you must be very careful.  Do your homework and practice and read, read, and read.

And if you make money, donate to 3StocksOnFire to thank this wonderful site!

Good trading!