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Arena Pharmaceuticals (ARNA +4.3%) rallies with the help of a Sunday Bloomberg column discussing...

Arena Pharmaceuticals (ARNA +4.3%) rallies with the help of a Sunday Bloomberg column discussing potential M&A interest in the drug developer, thanks to recent FDA approval of its Belviq weight-loss drug. Analysts speculate GlaxoSmithKline (currently divesting a diet pill line) or Japan's Eisai (the U.S. launch partner for Belviq) could make a bid. 25.3% of Arena's float was shorted as of June 15.
Comments (6)
  • I sold 50% of my VVUS holding around 24 usd and bot ARENA below 1.80usd.
    my best speculation in over 50 years stock trading
    9 Jul 2012, 12:40 PM Reply Like
  • Hi,
    Could someone explain in simple terms what this means:

     

    "25.3% of Arena's float was shorted as of June 15"

     

    st much to learn :)
    thanks
    johnny
    9 Jul 2012, 12:48 PM Reply Like
  • Hold on to this puppy its going to make a lot of money !! Drug offers hope to a lot of folks..Good M/A candidate...
    9 Jul 2012, 02:14 PM Reply Like
  • Secondary offering may come soon along with poison pill.
    9 Jul 2012, 02:26 PM Reply Like
  • Good! Sell'em $36.00 ps sounds good to me!!!....$$
    9 Jul 2012, 05:54 PM Reply Like
  • Johnny,

     

    The float refers to the number of shares that are available to be traded. For example, if the total number outstanding shares 1,000,000 and 800,000 are not available to be traded....the float is 200,000.

     

    The "float percentage that is short" is the fraction of the float that has been sold short. To "sell short," A bearish investor's opening transaction sells the stock...then the hope is the price falls and the closing transaction is a purchase at a lower price. So, if the short float percentage is 50%, then half of the folks are bulls and the other half have bearish bets.

     

    You should find the short float percentage in the "fundamentals" area when you are researching a stock.
    10 Jul 2012, 02:29 AM Reply Like
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