Special Offer Ends Soon!

“Underground” System Tracks 40% of Daily Wall St. Money

Millionaire Trader, Taylor Conway, creates Bloomberg scanner to track “Dark Pool” activity, opening the door for huge potential returns.

Learn how to position yourself for profit, before the markets move!

Why not: Zynerba Pharmaceuticals Inc. (ZYNE)

Kyle DennisKyle Dennis ·

The back story: On Monday, Zynerba Pharmaceuticals (ZYNE) released disappointing results for ZYN002, a cannabidiol-based gel in mid-stage trials for seizures in adults, and the stock went down 60 percent from $15.06 to $6.67. On Wednesday it bounced back up over $8, a pretty good one-day move after a failed trial.

Why others are buying it: Two more data readouts on ZYN002 are expected soon, for osteoarthritis later this month and Fragile X syndrome by late September. A lot of people are buying the dips, speculating the trials will report positive data and the stock will rebound.

Why I’m not: I think it’s a trap. If a drug fails for one indication, it usually fails across the board. Once the other results come out, if ZYN002 doesn’t work, Zynerba only has one other product in very early Phase 1 studies. That leaves them with a lot of cash in the bank but not many positive prospects.

In some cases, a failed trial can be a fantastic opportunity. When the stock is beaten down this far, people will panic and sell without taking a look at what else the company has going on. But not in this case. Traders are taking profits on this little bounce, but if you’re looking at starting a new position, I’d avoid ZYNE.

#-#-#

Kyle Dennis runs Kyle Dennis’ Biotech Breakouts (biotechbreakouts.com). He is an event-based trader, who prefers low-priced and small-cap biotech stocks. He currently has no shares, options or open orders in ZYNE.

 

Trending Now

Bull or Bear Market….It Doesn’t Matter

Kyle Dennis’ new, 5 min strategy is poised to double account sizes weekly! “I got out of GE trade at 379% $0.16-$0.77, thanks Kyle!” Said client Lance P. Check out the free training that started it all. (View Free Training)

SuperNova Service Leading Clients to 5-Figure Profits Consistently

“BOOM!!! Booked another $13,985 in profits on my long position $VMNGF. Great report came out premarket. Thanks Jeff at SuperNova for teaching me to make $$$ in the market.” Said Todd V. Jeff Williams is helping transform small accounts daily. Don’t miss his free walkthrough. (Watch Now)

Jeff Bishop, RagingBull.com Co-Founder, “Trading My Strategy Takes A Few Minutes a Day!” 

“Jeff, I have to say I was a little gun shy, but I bought the lifetime service (to Bullseye Trades) Friday night. First trade with your service…in LULU, 205 Calls at $4.70. (I) was going to be away from all internet connections for the next 3 days. It hit my sell price at $6.25 ;)” said James W.    (Read More)

Be a Better Stock Trader, Starting Today

Get the expert insights, tips and strategies you need to optimize your trading skills and profiles
START NOW