The Overall Rotation Trend ____ Favors ARNA and Longs
Friday was the merging of two trends affecting this stock. The sell side got a small taste of what sales will be and took notice. At the same time, triple witching expired and you saw what I predict will be a big move away from financials and tech into bio, and consumer goods for safety. Arena gives the MMs both plays for one dime. Id stay long here into the ER which already figures to be a grand slam.
Anybody can factor the 65 Million payment in and realize earnings will go from neg. to positive but it's only one quarter. What can they do to sustain that in Q3 with sales, that's the big question. There won't be as big of a jump as you might think on August 5th since the one time payment is probably already factored in. What's not factored in is the upgrades for Q3 & Q4 based on updated sales projections. That will be the real drive of this stock. If we get a pop of $1 on earnings alone, I would be a seller right after the upgrades come in and wait for the pull back.