Today's stock - Zynerba Pharmaceuticals

Zynerba Pharmaceuticals, Inc. (ZYNE)

ZYNE is a pharmaceutical company which develops cannabis related drugs. Incidentally, the time is perfect right now, with a lot of states legalizing cannabis. What this does is open up the market for cannabinoid and cannabis for both recreational and commercial drug use. From the map, you can very well see the laws regarding marijuana in the country. (Source:
For the last 5-6 months, Pharmaceutical companies have done very well. On top of it, if you observe the cannabis related pharmaceutical companies and the stock growth in the last 6 months:

AbbVie Inc. (NYSE: ABBV)
Aurora Cannabis Inc. (ACB.CN) (OTC: ACBFF)
Cara Therapeutics Inc. (NASDAQ: CARA)
GW Pharmaceuticals plc (NASDAQ: GWPH)
INSYS Therapeutics Inc. (NASDAQ: INSY)
Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE)

Majority of them have done exceedingly well, thanks to the relaxation of the marijuana laws.

A thing to remember about drug companies is not their earnings, but the pipeline of drugs in the making, and the credibility and success of their drug tests.
A stock pops if:
  • It has a drug in the pipeline which has yet to be tested.
  • It is currently in testing and the results aren’t out.
  • It is tested and the results were successful
A stock however fails if:
  • The test fails.

ZYNE has a trial of their most important product (ZYNE001) in mid-2017. It is no wonder the stock is doing so well. ZYNE002 begins drug tests in the first half of 2017. Also the company’s CBD gel is the first and the only synthetic CBD formulated as a patent protected permeation enhanced gel.

With the current rate of progress, the stocks seems like a perfect purchase till around July 2017. I think it should hit 30, so a 30% increase is left in it at the very least. If the results of ZYNE002 are positive, it will even grow further.

Be warned that the stock has a very high beta, so be ready to see some erratic reds and greens. It surely is a stock which keeps you on your toes.

(source: yahoo finance)

Here is my portfolio with ZYNE as a part of it. Let us observe the growth till July 2017, so that we can let the numbers speak for themselves.

Chota βeta's portfolio:


Chota βeta

1 comment:

Umair Ali said...

Today, the master of the instrument of the medicine has been marvelous for the use of the norms for the people. The success rate of the cheap essay writers has been mild for the approach of the problematic use of the things for the humans in life.