So, I don't consider myself an expert by any means but sometimes I just don't understand the market action what-so-ever.
I have been following ZLCS for quite some time because I am really fond of the idea of pain treatment without addiction/opiates. I mean, can you imagine people with chronic pain being able to deal with that pain without the stigma, side effect and/or damage caused by today's current meds.
With the news last week about Z160, I did expect a small blip on the share price radar. I know this isn't huge news like a successful phase II or Phase III trial, but it still shows they are moving in the right direction and working to completion. This should have been regarded as a good thing.
Instead, the last week has shown a continued slump in to some very dangerous territory. With delisting a possibility and Novartis revenue being so important to the future of this company, this slide does not do much to boost confidence.
Someone mentioned the possibility of a buyout. Usually, as a buyout comes to fruition there is an uptick in the share price. I have never seen a downtrend like this before a buyout.
Also, altruistically speaking, a buyout would probably be a bad thing. I don't want to sound like a conspiracy theorist or anything, but if you think about it for a second, any company generating substantial income from current pain meds would be watching Z160 to see if there is a potential for it to derail their current formularies. They could buy this company up now and shelve their patents/technologies/breakthroughs to continue with the status quo and thus continuing their profits.
Well...what ever the deal is with this, I just have to admit it has me stumped. Also, as the price dropped down toward .60 today, I decided that I would buy some more just because it seems like normally I would do the opposite. Guess I am hoping that it will be one of those that I look back in a few years and say "man, I could have bought that back when it was below a buck and made a fortune." I know we have all said that at some time or another. :)
Hope my random ramblings weren't to scattered.