Re: Excellent Post By Fundamentals6 on Investor Village Board
posted on
May 22, 2016 01:25PM
Zenith's BET Inhibitor ZEN-3694 is Currently Being Evaluated in Multiple Oncology Clinical Trials
Let us not forget that way back when as the Zenith company was being created and all of us who were RVX shareholders at that time were told by the directors that they recommended treating our new shares of Zenith (for tax purposes) as having a roughly 9% of our original capital cost of RVX shares value.
I looked at our shares of RVX which were trading at about $3.00 at that time as being reduced in value by about 27 cents and our new shares of Zenith having a value of 27 cents while RVX was thus worth $2.73 - Of course a lot of water has flowed under the bridge since then.
The prime problem was the "Failure" of the phase II which caused a tremendous drop in RVX and it ended up trading at about 20 cents with a very slow rise when the Post Hoc analysis showed that RVX worked well with Crestor but not at all with Lipitor. The stigma of a "failed" phase II has hung over RVX with the retail investor since then.
KD later came in with a further investment in RVX at $2.67 as did the Chinese licensee and big bucks were invested in RVX while the retail investors kept selling small numbers of shares and dropping the price since Patience is not a strong point with retail investors.
Similarly insiders put in a few million dollars to Zenith at $1.00 and now KD has put in big bucks at $1.00 to zenith.
I do not begrudge KD and the insiders who invested in Zenith at $1.00 and contributed millions of Dollars to keep the whole ball of wax in the air until results are available. I do not have the millions to gamble like that. I suspect that others also do not have money available to play in that league.
San Fran and I have talked back and forth about being a qualified investor and that $100,000 is the minimum investment to qualify but it is my belief that it is not worth it for the company to jump through the legal hoops for a small $100,000 investment and the directors would not like such small investments directly from the public (which includes us). On the other hand $25 million is worth it and that is why I believe KD can do so.