Zalicus Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Zalicus (Nasdaq: ZLCS  ) shares jumped 10% in trading Monday on unusually high volume.

So what: There was not any news from the biopharmaceutical company today, but volume was high in early trading. In less than three hours of trading, more than 2.2 million shares had changed hands compared with a three-month average of 533,000.

Now what: Without any definitive news from the company, this appears to be a speculative move in the stock. The market can take wild turns on this kind of volume, so be careful with this move. This Fool doesn't have the stomach to buy here without positive news from the company.

Interested in more info on Zalicus? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his Motley Fool CAPS picks at TMFFlushDraw.

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Read/Post Comments (5) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 25, 2010, at 12:53 PM, rdsrich wrote:

    If you FOOL's did your homework you would have seen there was another story this morning issued by SEEKING ALPHA sayind ZLCS was dirt cheap and a great investment. Missing this obvious news story and commenting that there was no news is a mishap on FOOLs part and they should follow up with a correction. Shame on the FOOL's.

  • Report this Comment On October 25, 2010, at 1:04 PM, robmcquinn wrote:

    Hey rdsrich, a pump piece (I always consider it a pump piece when the writer has a position in the company he's recommending to others) is not a news story. I suspect the Fools were aware of the piece as it was clearly flagged on Yahoo Finance and other such sites. Load up on ZLCS if you want but don't be surprises when it drifts back down to the $1.30s or lower without positive company news to maintain interest.

  • Report this Comment On October 25, 2010, at 1:16 PM, TMFFlushDraw wrote:

    I was aware of the piece and I don't consider it "news" for a company like this. It's like when Cramer mentions a stock, it goes up 6% the next day only to fall back to normal levels two days later.

    The goal of our Popped/Plunged articles is to give you relevant news about a company and how it may affect your investment thesis. Since there was unusually high volume on no news this causes me to throw up a red flag and be wary of the shares.

    Thanks for the comments,

    Travis Hoium (TMFFlushDraw)

  • Report this Comment On October 25, 2010, at 4:27 PM, insidetrader2010 wrote:

    http://www.zacks.com/mediaroom/zer_get_pdf.php?r=Z652589

    * FDA approved drug, Exalgo.

    * $50 Million plus in the bank.

    * No debt.

    *Collaborations with Amgen, Novartis, Sanofi-Aventis, US Army.

    *N-Type & T-type Calcium Channel Blockers.

    *Synergistic Discovery.

    *Prednisporin going to Phase III.

    *Synavive Going to Phase III.

    *cHTS technology.

    I know I have missed a lot of stuff but, ZLCS is way undervalued.

  • Report this Comment On October 25, 2010, at 5:46 PM, insidetrader2010 wrote:

    I am confused....In one article the FOOL write's an article that states Zalicus (ZLCS) is approaching greatness, see article here:

    http://www.fool.com/investing/general/2010/10/21/5-stocks-ap...

    Then the article above basically slams the same stock they just spoke highly of.

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