Zanett (ZANE) Continues Zanney Trading, Up 1000% Over Last Week

Shares of Zanett (Nasdaq: ZANE) are continuing their tremendous momentum run-up. Shares are up 14% today to $3.31 after trading at just $0.31 last week - a move of nearly 1,000%!

The initial move in the stock was attributed to news of record bookings of $12 million for January and February. The secondary move has been related to short covering.

While the trend for the stock has been up, up, up - fundamentally things aren't super rosy.

The company is low on cash, with just $87.6K in the bank at September 30, 2009. Revenues have fallen year-over-year and the company swung to a loss in its latest quarter.

There are a few significant news items due shortly that could impact the shares:

• By March 15, 2010 it expects to receive a delisting determination letter from the Nasdaq Stock Market Listing Qualifications Department. Zanett expects to request a hearing to appeal the Nasdaq Staff's determination.
  
  
• Earnings are due pretty soon. In the latest quarter, Zanett generated revenues of $9,903,120, a decrease of 22%. Zanett also reported a loss of $0.09 per share, down from a profit of $0.02 in the same quarter in 2008. Expect results in about the next 10 days.

So while traders may be enjoying the ride in Zanett for now, don't be the one last to exit. This ship could come crashing down.

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