Earnings will be negative, sales growth is stagnating, no resolution with Takeda, lawsuits still open and no partner news in Europe. Secondary coming down to $4.00. Well at least that's what I though I heard.
In just 5 days. They propped it up to do the secondary to get their cash. Not that they have it the longs have mysteriously stopped buying and are now getting out in an orderly fashion. You should too. $100 is right around the corner which will inflict max pain on short term longs.
I am not suggesting anything. I am stating my observation from past history. Look at the post just before mine today. SURPRISE, an upgrade from Zacks!!! Did I call it or what. It's all part of the game man. Just gotta learn how to play.
When a secondary offering is made the trade off for the infusion of capital is the ability to give the investor a lower buy in price or a safe haven if you will. Once a price is established the stock price usually trades at that level briefly since that's the current bid as a result of the dilution. Since the stock traded up somewhat on the news, the MM needed a negative catalyst to help ensure the drop in the PPS. It will be short lived but now the MM can buy more shares at the lower prices for their clients and when the get what they need to fulfill their orders, they will ask that an upgrade be announced so their clients get a quick profit. It's just the game they play across the board.
It was to help get the share price down to the secondary offering PPS. It had not really dropped on the news last week so hence the downgrade. Watch, in a week it will be upgraded again.
Why would anyone in their right mind buy a depreciating asset like ARNA. Hey what ever happened to all that hype just a week ago about a BO and pipeline success? Don't see it happening do you???????
Don't be surprised, at least the shorts got what they wanted? Is that what it's all about. What the shorts want. These little bios all get treated the same way. The market them hard when they pass phase 1 & 2 trials and then they let them run to unheard of valuations only to drop them down the 42 - $4 range again because it's harder to market a drug than it is to develop one! Case in point. Just look at VVUS's story over the last three years or so. Two approved drugs in two different categories and a #$%$ poor PPS to show for it.
due to 4th of July holiday last week. The shorts will make you think otherwise but reality is reality. Same thing happened on Memorial Day and it will happen again on Labor Day.
Yesterday KERX goes up for no reason and then the late day article from farwagi and farwagi comes out and BANG the gains are gone. You saw it first hand here. Again as I said, this stock is dead money. Petey just didn't listen to me almost a year ago.
If you are okay with missing a potential news event, you can buy and sell between $4.50 and $5.00 probably several times a month. The more shares you obtain now the more you will have when the sales take off. Gotta have a little guts and an oh well attitude if you miss a bump or two. The MM have proven to me anyway that they will let the stock run a few times to $5 and they will also support it around $4.50. Pretty safe bet to grab some freebies.