Review of Zynerba Pharmaceuticals (ZYNE)
The portfolio contains 7 stocks, value at the time of writing = $5.41
Company capitalization = $140 million. Founded in 2007, traded on the stock exchange since Aug. 2015, during this time it went from $36 to $3 🤔 Occupation - development of drugs for the treatment of patients with rare neuropsychiatric diseases. And yes, drugs based on cannabinoids 🙃
The total staff is 28 people. The company has been unprofitable throughout its trading history, but according to forecasts it will be able to achieve profitability in 4-5 years, exceeding its current capitalization.
Conclusion: a very volatile and risky stock. I recommend no more than 1-2% per portfolio. According to analysts’ expectations, starting from 2023 it will achieve sustainable profits, but you should not unconditionally trust the forecasts, they can be erroneous. The company has no debt, the current cash in its accounts is ~$60 million (with a capitalization of 140), about 6% of the company is held by insider Michael Rapoport - reasons for cautious optimism regarding ZYNE.
Included:
1) Share price for 2015-2020
2) Revenue and profit, 2020 and beyond - forecast values
3) Profit per share, 2020 and beyond - forecast values
Ideas
June 9, 2020