Entering text into the input field will update the search result below

ZLCS: Decent News But Continues To Drive Downhill

Apr. 08, 2013 3:16 PM ETEPRS
aCyclist profile picture
aCyclist's Blog
3 Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

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.

Disclosure: I am long ZLCS, ATRS, NVIV.OB, VVUS, ARNA.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You