Hola Roachies ! Who’s ready for some SWING dancin? I know I am and this is the best time of year since August blows chunks and we are getting ready to climb back into a lot more volatility in September. So what a better way to leave August behind than to find a beaten down “great value” stock like ZLCS. Now for those that don’t know ZLCS keep in mind its a biotech company that works on pain and inflammation something that I have each and every morning when I roll out of bed! They currently have drugs that are in Phase I and phase II as you can see below.
Zalicus Inc., a biopharmaceutical company, discovers and develops drug candidates focusing on the treatment of pain and inflammation. The companys clinical and preclinical product candidates include Synavive, a glucocorticoid prednisolone product candidate, which is in Phase IIb clinical trial for the treatment of rheumatoid arthritis; Z160, an N-type calcium channel blocker that has completed Phase I clinical trial to treat neuropathic and inflammatory pain; and Z944, an oral T-type calcium channel blocker, which is in Phase I clinical trial for the treatment of various chronic pain conditions, as well as sodium channels to treat acute and chronic inflammatory, and neuropathic pain. It has research collaboration agreement with Hydra Biosciences, Mallinckrodt Inc., and Amgen Inc.; research and license agreement with Fovea Pharmaceuticals SA and Novartis; and cooperative research and development agreement with the United States Army Medical Research Institute for Infectious Diseases.
Taking a closer look at the chart it looks like ZLCS is coming to short term support at 1.28 and 1.20 prices which are the 20 and 200 SMA’s and has posted recent highs to 1.49 and 1.62. However, with their drugs in Phase II ZLCS could be a great mid to long range swing trade keeping in mind that ZLCS was trading at 2.90 range back in mid 2011. With a recent positive 2nd quarter, ZLCS could be on the mend and ready to move to higher ground in late 2012 and early 2013.



