Rather than everyone guessing what will happen, can someone with some experience give some examples of the actual impact that a RS will have? I have read a few articles and it looks like a 50-50 split. I feel that the trial results are what will umtimately determine the fate of this stock. anyone jumping ship over a r/s was never really in it to begin with. if the trials go well, we have a winner. if they go bad, we have a clunker. the split was announced before the current trial if i am not mistaken so i dont think the two are related. thoughts?
I own Duke Power in both my IRA and individual accounts. It had a 1 for 3 reverse split in July of 2012. I bought at about $20 per share several months earlier. The PPS had risen to about $23 and the split took it to $69 per share. It dropped, but regained some of the lost ground. I'm up several thousands of dollars from my original purchase price plus the 5% dividend that I have reinvested.
Duke is a well-established company unlike ZCLS, and I didn't expect and significant appreciation of the PPS. ZCLS will come out at about $6 per share tomorrow since the split will be based on today's closing price and not the afterhours price. With the company the PPS may drop sharply in coming weeks, but it has several products in its pipeline and good news about any one of them can have a dramatic effect on the PPS. Still, keep in mind there have been big losers after reverse splits. CTIC is one example. Check its history.
Biotech investments are #$%$ shoots, but approval of a leading drug candidate can offset losses. A month ago, OSIR reported success with its Grafix treatment for diabetic foot ulcers and its PPS spiked from $10 to $27 overnight. It got some negative press and short sellers beat it down to $16, but it is now at $19.
Wish I could tell you all will be well, but I don't know. Each of us has to decide whether we believe in this company and its products. Like poker, you can hold 'em or fold 'em.
Basing it off alxa and cycc which I hold it does not look good even with all the positive results and bringing a drug to market .For me personally it needs to go above 12 post split before I rally rake in big .I can seek some comfort in what happened to Avnr and acad which is just insane I bought acad and Zlcs around the same price just below 2 dollars
It's biotech, so it doesn't really have a positive to it cause it is still speculative based on Pll results and pipeline. This R/S will shake out all the small penny stock buyers so it will hurt volume big time. I expect this will more than likely hurt the pps for the next week or so, but I do see a run up to the Pll news. Where it bottoms out? All depends on who's interested at what price that will create buying and bring in volume.
RS is generally perceived as bad because as someone speculating on a stock, it would appear that the potential profit seem to have diminished. For instance, it seem easier to see a $1 share go to $20 than a $10 go to $200. But as you said, you have to believe in the pipeline to be in the stock. Hoping that the RS will not happen is definitely a wrong reason to be in it.
agreed. everyone was comparing this to the big Bio's so this shouldnt shake anyone. All ive heard is how this isnt a penny stock yet everyone is reacting like its a penny stock. the product is still there. the decision to split happened long before today. somehting like that doesnt happen overnight. this will cause a down tick, but anyone who thought the stock was running up shouldnt be jumping ship over this.
Yeah, anyone saying it's nearly always bad or always good is just looking to get folks in a tizzy. Each case is unique and folks should evaluate what's going on with the company in general to determine whether it makes sense to stick with them. Nothing has changed with regards to the pipeline at ZLCS (at least in the form of public news). As others have said, there's potential upside of being above $5 so more mutual funds can invest in. On the downside, it takes a lot more price change to get the huge % gains that we saw recently.
I'll just add that I think the company was hoping to time the R/S when it seemed likely that they would get in the $5+ range after the split. So, that just happened recently. That to me would explain the timing. Waiting any longer didn't really seem to have any value add.