Seeking Alpha
Seeking Alpha Portfolio App for iPad
Finance
(1)
Market Currents

The selling pressure seen by Arena Pharmaceuticals (ARNA -16.4%) remains intense, as shares give...

  • Friday, June 22, 2012, 12:25 PM ET
    The selling pressure seen by Arena Pharmaceuticals (ARNA -16.4%) remains intense, as shares give back a healthy chunk of their recent gains. Possibly hurting Arena's cause is an article from SA's Shane Blackmon, who notes Arena's rally has been fueled by short-covering (22% of the float was shorted as of May 31), and argues "a bear raid seems inevitable" ahead of the FDA's expected June 27 decision on the company's Locaserin weight-loss drug.
Track new comments on this story

This news story has 28 comments:

  • Huh?
    22 Jun 2012, 12:30 PM Reply Like
  • just watching trading, my impression is that these hand waving
    comments made at the same time were published to relieve
    pressure on naked shorts
    22 Jun 2012, 12:44 PM Reply Like
  • I had been short expecting a move like this
    Here are my charts and so http://bit.ly/NfEJia
    I blame this fall on the technicals but others are saying its a news leak
    22 Jun 2012, 12:49 PM Reply Like
  • Now that is low could be the time to buy? Or will be better to wait just before June 27.
    22 Jun 2012, 01:02 PM Reply Like
  • You have got to be kiidding ! Do you really think that Shane Blackmon has the sway to move millions of shares and the price of Arena down? This a bear raid by the MM's that ultimately will have short-term impact (counted in hours), and the end will be a minor blip on the radar screen, for a pharmaceutical that will go on to make a lot of money for those that hang in, and don't panic.Do you really think that when hundreds of millions of shares have traded on this stock, and that a guy in a tee-shirt writing a lame article is going to rule the day? Chalk it up to pure happenstance...I don't see the correlation of the activities on the stock today and his larticle. Shareholders should hold in there, and not panic. I am not selling!
    22 Jun 2012, 01:44 PM Reply Like
  • Long term health care professional and investor of ARNA.
    22 Jun 2012, 01:44 PM Reply Like
  • Meaby I have to sell My Arna Stocks before 27 Jun 12?
    22 Jun 2012, 02:05 PM Reply Like
  • If Arna gets the go ahead on June 27, it will be at $49 in 12 mos.
    22 Jun 2012, 03:13 PM Reply Like
  • Not if Qnexa is approved within the next 12 months as well.
    22 Jun 2012, 04:17 PM Reply Like
  • I believe that Neider's comment is just wishful thinking. However, I believe your comment is too. Do you really think that a combination of phentermine/topiramate will rule the day? Phentermine has been around since 1959 and is similiar in chemical properties to the amphetamine class of drugs. That should raise a flag right there. Phentermine is habit-forming and banned in Europe, and I could go on and on. Topiramate (topamax), I've been passing that med to my advanced stage MS patients for years. Lots of side effects and drug-to-drug interactions, but given the seriousness of their disease, the drug is the lesser of 2 evils. It's also used to help prevent migraines for well over 5 years. Btw, both these drugs have been used for years alrdy for weight loss. Yes, Doctors have been prescribing Topamax off label for weight loss for some time. There is nothing new or novel about Qnexa other than it will probably be prescribed for no more than 12 weeks at a time. Probably better off getting topamax off label from your favorite MD for long term use, and get your phentermine from your kid's high school friends.lol.
    25 Jun 2012, 01:09 AM Reply Like
  • Agreed
    22 Jun 2012, 03:17 PM Reply Like
  • Is anyone really so out of touch with reality that they think a SA article is the cause of this drop in ARNA?

    If so, they had better hire a broker to make decisions for them! Good Grief, can we stroke this any further?

    Has no one seen a drop when profits are taken? Profits were taken it is obvious which caused a price drop, which caused stop losses to kick in, which caused panic! Now the savvier investor will buy Call Options instead of stock to lower risk pending the FDA decision Wednesday.

    “There has been no bad news regarding the company or FDA”.

    The only bad news is to the people that panicked and to those with stop losses set not able to get to a computer in those ten-minutes of chaos.

    I believe "this will be approved Wednesday", and people will be scratching their backside wondering what happened!
    22 Jun 2012, 03:55 PM Reply Like
  • People are concerned a delay is coming. It is a definite possibility. Nothing is a guaranteed grand slam.
    22 Jun 2012, 04:16 PM Reply Like
  • Spencer I totally agree!

    However, that was not the cause for the panic today. I have been preaching to use caution with this one for some time now.

    I think this morning’s profit taking found people looking for an immediate answer. Regrettably, they looked on Seeking Alpha and found this "pathetic article".

    I do believe this author damaged a lot people’s way of thinking added to the chaos, and loss of money!
    22 Jun 2012, 06:17 PM Reply Like
  • I understand delays happen..but don't they usually happen a week or so before the approval date? I could be wrong on this.

    I'm saying this because obviously we're only a few days away from June 27th and if they were going to delay wouldn't they have done so already?
    23 Jun 2012, 10:01 AM Reply Like
  • Agree with Spencer Knight
    22 Jun 2012, 04:44 PM Reply Like
  • This is a good stock from a good company. I believe it is currently under valued and the stock will continue to rise. Now is a good time to buy so as to not miss the upward swing that will happen in the near future, especially if the FDA will make the approval for the weight loss drug.
    22 Jun 2012, 05:58 PM Reply Like
  • I took my profit,and will go in again after 27th or whatever the date might be. I think it will be delayed.
    23 Jun 2012, 05:54 AM Reply Like
  • I took my %. Meaby I buy it again after 27 jun.
    23 Jun 2012, 05:58 AM Reply Like
  • Its rational to take some profits. But seeing trading that exceeds the float raises some questions. Is the SEC watching this? Is there enough stock on the books at the end of the day to cover the longs? That's the reason for the run up. If you don't have the stock they should put up the cash, liquidate all margin accounts that can't be covered, close down the brokerages that can't meet the rules.

    If the short exceeds the float - they are in deep do-do.

    Draw out your stock in certificate form, tranfer all positions to cash accounts, tell your broker that your stock is not available to be margined out for short positions.
    23 Jun 2012, 06:09 AM Reply Like
  • Who in the World is Shane Blackmon ? He has no clue when he writes, he has no facts, so he is another guy who wants to sell shorts, ....Come on Daily traders, get your facts before you dump millions of shares only to benefit short sellers....I agreed with others comments, Hopefully the SEC is watching these type of moves....
    23 Jun 2012, 03:08 PM Reply Like
  • i belive that this shane blackmon doesn't know what short covering is,
    I wrote the sec about this moron and hope that something will happen,the naked short seeling was crazy ,
    it looks like he was short god i hope the sec check this fall, I also called ameritrade to see if they could also call the sec and file the forms
    24 Jun 2012, 11:23 PM Reply Like
  • Seeking Alpha should have “Never” allowed this to be published! They too are at fault.
    23 Jun 2012, 03:12 PM Reply Like
  • I am not selling, but it seems like something is wrong with the system, this stock is being manipulated and should be investigated by the SEC. Is it possible that a large number of shareholders all in the same short time span thought about selling and buying options?
    23 Jun 2012, 03:15 PM Reply Like
  • I see a lot of potential in ARNA

    Keeping my fingers crossed - hopefully June 27th is the day !
    23 Jun 2012, 04:49 PM Reply Like
  • I am waiting June 27th
    23 Jun 2012, 06:07 PM Reply Like
  • Actually, at these prices it is a “Great buy”!
    I increased my position by 5000 shares. Others have told me they also increased their shares drastically. Prior to this, I was not going to hold through the 27th, but now I will wait for the approval.
    23 Jun 2012, 06:33 PM Reply Like
  • still waiting
    25 Jun 2012, 11:12 AM Reply Like
Other date
DJIA (DIA) S&P 500 (SPY)