Larimar Therapeutics Inc (LRMR)

[doglover1]

Anyone considering suing ZFGN, do it with your own attorney. If you join one of the 'class action lawsuits', you'll end up with a check for $.86 or some other ridiculous amount under $1.00. Class action lawsuits make money for ambulance chasers only. People they represent get next to nothing, if anything.

Also, if you join a class action lawsuit you cannot later file a suit of your own. Double jeopardy in reverse.

Been there, done that, and have the tee shirt to prove it.

If you use your own attorney company will (probably) settle out of court, but you'll still only get a fraction of what you lost in the stock. And going after company officers or directors NEVER pan out, as your attorney will explain to you. They are 'endemnified', or some bull-shit thing like that.

[CalderQuacks]

Yeah i'm not really worried about it

[hugh_jackoman]

You aren't charged in a civil suit. It was a class action suit filed by a lawyer looking to make some money. Only one plaintiff was listed in the suit a guy from Israel.

[Klinsmann]

When is it going to reach pennies? Next week lmao

Lets talk again in 2 months - patience is a virtue...

[doglover1]

Bailed out today at 11.26. Think this one's on it's way to pennies.

But good luck to all.....Ended up .34 cent a share LOSER.

[girlfriend]

http://www.bizjournals.com/boston/blog/bioflash/2015/10/zafgen-says-fda-will-still-review-data-from-trial.html?ana=yahoo

[CalderQuacks]

In all honesty, I think we are where we are at because of decisions made by outside counsel for the executive board.

Yes its bad they are silent and yes its bad they did not disclose certain things, however, i think they were advised to keep their mouths shut. By disclosing anything or admitting to anything will automatically incriminate them in court.

IMO the execs are done for on this company and it gets bought out by one of the big guys.

[doglover1]

I'm really amazed that there is no word, or update, from management about what is going on here. You would think SOMEONE in management would feel it would be at the least respectful to give shareholders a heads up on everything going on here and what we can expect as far as a timeline on autopsy results, hold on testing, etc., but NOTHING, total silence.

I just got in last Friday, only down a little less than a buck a share, but thinking of getting out. The CMO cashed out, and he certainly knows a lot more bad stuff than we do.

Think I'll trade this one for more FCX. It's down also, but I know it will come back. Not at all sure about this one.

But good luck to all longs here.....Thought I'd scalp a couple bucks a share here, but instead I got scalped for a buck instead.

[viper666]

Yeah I have 2 grand on hold just waiting the out come, or any news be it good or bad, I will be in then, come on ninja,lol....

[YesWeCannabis]

Never mind! Thanks, lol

[YesWeCannabis]

This ticker caught my attention, where did you find these charges? Thanks in advance!

[CalderQuacks]

Well, let's see what happens to the PPS now that the CEO has officially had charges filed against him for securities fraud.

[girlfriend]

Thanks

[CalderQuacks]

http://insidertrading.org/?sort_by=acceptance_datetime&asc=&symbol=ZFGN&date_from=2015-09-01&date_to=2015-10-21&submit=+GO+

[CalderQuacks]

The CMO dumped all of his shares

http://insidertrading.org/?sort_by=acceptance_datetime&asc=&symbol=ZFGN&date_from=2015-09-01&date_to=2015-10-21&submit=+GO+

[girlfriend]

I also could not find any recent insider selling.

[BELLICOSE]

I searched Edgar and found no recent evidence of insider selling. Can you please share where you found proof of this. Thanks

[CalderQuacks]

IMO worst case scenario is management gets in trouble with SEC for selling stock before the crash when they knew of the death. The PPS goes down some more and the company gets bought for roughly where the PPS is at now.

[magness]

Holding up nicely on a bad day for healthcare and the $IBB

[CalderQuacks]

IMO we hear by the end of this week, worst case scenario end of next week. According to the company, the patient passed away roughly 2 weeks before they announced it, so we're now at almost 3 weeks since the patient passed away.

Risk/reward is too good to pass up at these levels IMO.

[doglover1]

I agree. I read in one report that results from the autopsy will take at least two weeks, making both long and short bets here pretty much a crap shoot. But the long side will have a greater reward on good news than the short side will on a negative report so I'm holding on here. Mondays close has me only a few cents underwater, less than a dime a share, after two buys Friday.

[CalderQuacks]

Slow and steady uptick. News of the death not being caused by the drug could send this over $30 in a day as shorts get squeeeezed

[OB_WEALTH_INC]

ZFGN SO FAR SO GOOD....

[OB_WEALTH_INC]

I WONDER..where the bottom could be ? Maybe $1 dollar?

[OB_WEALTH_INC]

$36 to $10 in 5 days... That is INSANE drop..

[OB_WEALTH_INC]

At the moment..crazy PANIC selling going on..when will it stop? I am putting ZFGN on my watchlist ....

[OB_WEALTH_INC]

ZFGN i am staying away for now...no bottom set in...could drop even more....Management needs to update with regards to drop of pps and what they project to do....

[FBI Agent]

Everyone in the trial were sick. Report will show nothing regarding the drug. Three week delay at most for dosing which the FDA says the trial is still in tact. Will see 30 soon. No substance here.

[doglover1]

I would think the bears will be taking a big gamble here if they take an initial short position Monday. Further downside from here will be limited to companys present cash per share, $7 - 8 depending on which article you read. That means shorts - best case - would get a $2 - 3 payday from here.

Longs, on the other hand, have a chance for a much bigger payday. If autopsy on test death patient turns out to be 100% non drug related, then this thing probably goes to $25+ very quickly, as regular testing will continue and its nearing the end of the test trials (or whatever they are in medical terms.)

I expect a jump Monday morning, but a further $2 buck drop wouldn't bother me all that much. I'd triple my investment at $8.50. Very little downside from there unless the whole thing goes belly up, which I doubt.

[Shaun_Pro]

Wow excellent play! Bought around the same price and sold at 21.05. Got back in at 13.52 and 11.22, shorts have to cover and news is on the way. If the autopsy can verify that the patient died from being ill since he was already very ill we are going to see $27+ maybe $30

[MASTERTRADER]

ZFGN: grabbed 5k shares average $10.72. gonna sell the bounce cause it's always there for nervous shorts! Will be adding 2k shares on every $.50-$1 drop to bring the cost down if that happens. Eventually this POS will bounce, thus it's a money maker for me at least!

[doglover1]

I totally agree. Anyone who's been around the markets for a while have learned to ignore the ambulance chasers.

I just got in here at 11.00. Will buy more on additional 50 cent drops. Held off on 10.50 because it looks like it will probably see 10.00 Monday. Nothing like catching a falling knife. Blood all over my new cloths.....

[ronk]

6 law firms crawling out of the woodwork. I've seen this a lot in the past few weeks with other biotechs.

I don't think it means anything. Opportunists without thought or spine.

[ronk]

It will recover but that lawsuit baloney that the ambulance chasers like to pull will cause a bit more hangover. Never fails. it's a falling knife now but there's a good opportunity here when people come to their senses. But could trip some stop losses at $10 and there are a lot of shorts playing.

[ivorytowerboy]

The news was middle-of the road, and ZFGN got a 50% haircut (down to $10). In a couple of days, ZFGN will begin a beautiful, inexorable recovery.

[bdphan]

This one looks so ugly today. Down 46%

[pick em low]

wow, sweet, I should have kept dry powder to get some in 12's, that drop from 20 to 17.63 got me, sold 18.73, then shorted at 18.20, ouch, but not too much, crap should have just re-bought, I got all confused, then last 15 min they ran it up. I kind of expect it to go back to 18 at some point today. Valuation between 7 and say 31 so mid point if u want to assume 50 50 shot at bad news, price would be 19. It's going under 8 or to/above 30 if news is definiative in either direction and not middle of the road news.

[MASTERTRADER]

lmao, guess big balls make the biggest $$$$$. glad added at $11.18, 11.02 and $10.90 (lol, I swear they filled me at the lowest) and sold all the way up to $18.60. of course didn't make it to the highest but was a HUGE day

[pick em low]

GREEN, told ya, too bad I had no dry powder in 11's, damn!

[DewDiligence]

Capsule summary of ZFGN including today’s news: #msg-117714446.

[pick em low]

But yes they handled it a bit poorly

[pick em low]

Insiders can't sell if they had information, they'll be going to jail, plus all the facts not in yet, death cause is uknown, this is way oversold, they have other trials too, plus brokers (and one did this morning) will re-iterate buy & price targets

[DewDiligence]

The overall sequence of events is pretty bad: 1) heavy insider selling; 2) radio silence while stock tanked from presumed leak; 3) patient death.

[Wildbilly]

I forgot about that thanks.

[pick em low]

News is not bad, I work in this field, any SAE (serious adverse avent) for a patient has to be reported to FDA, if the person gets hit by a car crossing the street, it still has to be reported (i.e. in theory maybe drug made them dizzy and they wandered in the street). The earlier phases of clinical trials deal with safety, then later phases with efficacy. Yes, saftey things can crop up in Phase 3 but a lot less likely, it passed safety with flying colors in earlier phases. All these people have health problems being obese, it could be anything and who knows maybe this person was one getting the placebo.

[Wildbilly]

ZFGN halted - patient death

"Zafgen recently learned of a patient death which occurred in the Company’s ongoing double-blind, randomized, placebo-controlled Phase 3 bestPWS study of beloranib in Prader-Willi Syndrome, a rare genetic disorder with a high rate of mortality linked to obesity and its co-morbidities. The cause of death remains unknown at this time. According to normal practice, the event was reported to the U.S. Food and Drug Administration, at which point the Agency initiated a discussion with the Company. The Company is working with the Agency to expedite a review and understanding of this event, and to determine implications of the event on the conduct of the trial, and anticipates providing an update as its discussions with the Agency progress. The thoughts of the Company are with the family of the patient at this time. Zafgen remains committed to ensuring the safety of all patients enrolled in its studies.”

http://finance.yahoo.com/news/zafgen-issues-statement-160001458.html

[Wildbilly]

Out $17.70

[Wildbilly]

Crazy explosive move coming +/-

[Wildbilly]

I'm in for a few $16.15

[Wildbilly]

ZAFGEN INC (ZFGN) PLUNGE SPARKS HEAVY INTEREST IN OPTIONS

Zafgen Inc (ZFGN) is getting drilled, potentially on insider selling

10/13/2015 2:11 PM

Drugmaker Zafgen Inc (NASDAQ:ZFGN) is one of the leading losers on the Nasdaq today, down 22.3% at $17.21, and on the short-sale restricted list for a second straight day. Rumblings around the Internet suggests heavy insider selling is to blame for the stock's swoon. Meanwhile, activity has erupted in ZFGN's options pits.

Diving right in, intraday option volume stands at 12 times the norm. October strikes account for six of the seven most active strikes this afternoon, as traders pick a direction ahead of this Friday night's front-month expiration.

Meanwhile, ZFGN's 30-day at-the-money implied volatility has shot 87.1 points higher to an annual acme of 288%. This only echoes the elevated volatility expectations surrounding the stock, as its Schaeffer's Volatility Index (SVI) currently rests at a 12-month peak of 149%.

Elsewhere, short sellers have been placing bearish bets on ZFGN, considering 9% of its float is sold short. At the stock's average daily volume, it would take close to one week to repurchase these positions.

Returning to the charts, today's steep loss is by no means a unique event for Zafgen Inc (NASDAQ:ZFGN). Just yesterday, the shares tanked 35.6% after the company cancelled an investor meeting.

http://www.schaeffersresearch.com/content/options/2015/10/13/zafgen-inc-zfgn-plunge-sparks-heavy-interest-in-options