Seeking " Short Squeeze & Catalysts Taking ARNA Much Higher" ((link))
Today's Market News to Trade On 1/16/13 By: Matthew Smith
It sure looks like a short squeeze is about to take place at Arena Pharmaceuticals (ARNA) over the next few days as shares moved up another $0.61 (5.97%) to close at $10.81/share on very strong volume of 27.9 million shares. We pointed out yesterday the degree to which bears were involved here, however over the next few days we could see some serious movement if everything goes well for longs. First investors are awaiting for the decision out of Europe which is due Friday. Also due out soon is the DEA (yes that is the Drug Enforcement Agency) moving to close the 30 day comment period on Belviq and the finalization of its ruling. That will be positive for the shares should everything go smoothly, but the partnership will not be able to sell their drug until another 30 day period concludes after the DEA finalizes its ruling (discussed previously). Assuming a best case scenario, the company should be able to have patients getting their prescriptions filled in a little over a month here in the United States.