Tranzyme, Inc. (NASDAQ:TZYM)

pchop123 (76.58) Submitted: 5/20/2013 12:23:19 PM : Start Price: $0.60 TZYM Score: -0.19

more downside very likely

zzlangerhans (99.78) Submitted: 5/10/2013 3:46:04 AM : Start Price: $0.53 TZYM Score: -10.10

Tranzyme surprised me by embracing their new role as Nasdaq-listed shell company so quickly after completing the failure of their entire pipeline. Nevertheless, I don't think current Tranzyme shareholders will be getting the best of the bailout deal from Ocera. Tranzyme only had 11M at the end of Q1 yet they're sporting a market cap of 15M. In order to complete the merger, Tranzyme will have to effect a reverse split which is unlikely to do their share price good. Finally, current Ocera shareholders will own 75% of the combined company and it isn't exactly clear what they're bringing to the table. As long as CAPS calculates the fair value of current Tranzyme stock in the combined company, I think this red thumb will succeed.