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ZK International's Pullback Could Be An Opportunity To Buy

Nicholas Kitonyi profile picture
Nicholas Kitonyi


  • Shares of ZK International have pulled back by more than 50% since peaking in March. This could be a good opportunity to buy.
  • The company has diversified into new lines of business after investing in the iGaming industry. It also has several products on its blockchain R&D lab.
  • Its bottom line suffered last year amid lower ASPs forced by the Covid-19 pandemic. The company is targeting a return to normality but new Covid variants could be a problem.
  • However, the iGaming business could be a game-changer if projected industry growth rates and MaximBet’s ambitions, in which it has a 25% stake, come to fruition.

Close up Close up cropped shot of male handholding mobile phone with bookmaker application interface
Photo by Wpadington/iStock via Getty Images

ZK International (NASDAQ:ZKIN) is a leading provider of high-performance stainless steel products. The company is looking to leverage opportunities in emerging industries to boost long-term growth. ZK has made key acquisitions and partnerships in

This article was written by

Nicholas Kitonyi profile picture
I am a financial analyst and private investor with a primary focus on high-growth stocks. My portfolio is mainly made up of small caps, but there are also a few blue-chip picks. When I am not investing or writing about investments, I probably have a good time with my family. NB: Investment opinions are just opinions. I am not a registered financial advisor.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (13)

5150. profile picture
I guess the good news is, ZKIN will not go below 0.
5150. profile picture
Does anybody have an idea of what's going on with this ZKIN?
@5150. I wish I knew
This is painful, I bought at $2, rode it all the way up. And am still holding.
5150. profile picture
@Jkoch96 I've done that so many times with many stocks, and it more than sucks.
5150. profile picture
@Jkoch96 Are you still holding?
@5150. Yes, yes I am. I'll buy more if it bounces off $2.30, I have it in my long term account. I believe in the company long term and do not mind holding for 5+ years while we wait for the NFT market to take off
xurocca profile picture
Perhaps, this has been caught in the market's disavowal of NFT's, recent commodity fallout and the web of China uncertainty. But, unlike some other Chinese mini-conglomerates, this one seems to be doing things right, and this is, largely, IMO, due to diversifying outside of China.

They also won a bid to supply steel pipes to ENN Group (HK:2688), whose price has appreciated from a low of 80.65 in October to 164.80 today.

Perhaps, a few downsides, though.

In their most recent prospectus, to raise 18m by issuing 4m shares, they state that they may need to raise more capital by issuing more shares resulting in more dilution. I don't see this as a risk but more of a certainty. The initial MAXIM bet financing was for 15m. The second tranche is for 35m and was due to close in Q2. Where is that money coming from? Their annual filings make it hard to gauge their free cash flow but as of September 2020, it was reported to be 3,759,535. Perhaps, they have already paid the 35m? I just wonder how.

Also, they inform of the risk from COVID-19, the possibility of the PRC changing their tax status, competition and the possibility of real estate and hospitality sector failings in China. All these risks are related to their steel pipe production. These seem pretty obvious.
@xurocca They would have been obligated to announce the second tranche if it had closed. Thank God they did not or ZKIN probably would have further diluted shareholders. The stock is taking a beating and there is no end until possible earnings.
What is the latest news on x Sigma launch? Did it happen?
@john pyanowski I do not see any evidence of a launch. Maybe I am wrong.
@SkiDaily it looks like ZK is gearing up for launch with many potential money-making platfotms
GordongekkoCrypto profile picture
Anyone have any comments on this article? Seems well written. Does anyone agree or disagree?
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