FDA Delay Reaffirms Short Case for Encysive

I've written on a couple of occasions how I thought Encysive Pharmaceuticals (ENCY) was a good short. With the announcement Saturday that the FDA will delay any ruling on Thelin until June 15th, the stock dropped 25%. I still am mistrustful of the CEO for his lack of disclosure as to what the problem with their first two submissions was.

The stock may well drop further, but at this point I would look to cover today and take the approximately 25% profit the short I recommended (at $5.76 week of Nov. 6) affords. My take is the stock will wind back up toward June, when it will be time to reevaluate whether to go long or short. My initial guess is still short, but this is subject to change.

ENCY 1 yr chart

ency chart