Friday, May 20, 2005

Company Update
Zapata Corp
Ticker: ZAP
Price: $6.7

Shares of Zapata, which we featured in last weeks report, are down 20 percent since then. That's right, a 20 percent drop in one week. There has been no news on the stock though, and the trading volume has been below average, so the sky is not falling. Your editor is holding his shares.

As of last weeks report, Zapata was trading at a 14 percent discount to the value of it's holdings in Omega Protein, Safety International, and cash. Today, that discount is 38 percent.

Please see last weeks report for more on this story. Volatility is sometimes the name of the game with some of the stocks we research here at Cheap Stocks. You definitely need a strong stomach. But we still believe the true value of Zapata will ultimately be unlocked. It just may be a wild ride.

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