Will you invest in a company with a market cap of $17 million with $44 million in cash and no debt?
What if the company doesn't have a revenue stream yet? I first looked at Zynerba Pharmaceuticals $ZYNE in 2020 and since then, the stock has crashed by over 95%. Zynerba Pharmaceuticals has only one product, Zygel, a drug for the treatment of Fragile X Syndrome and 22q Deletion Syndrome. The drug is still in the pipeline awaiting approval from the FDA but things are looking promising.
The main reason why I'm investing in ZYNE is for the good balance sheet. The stock training below its net cash value provides great protection against any downturn. The management is also containing cash burnout and if the drug gets approved, the rewards could be big.
It is a very risky investment and I will recommend not investing much of one's portfolio in it.