Sharon, Arena has more patients filed than most major pharma players, it won't make a tinkers damn on the trade tomorrow, and hasn't in the past. Let's stick to reality, that patient value is far removed from the trade.
I have to laugh at your description of a stock you own (ARNA), and it's a very true picture of the trade action over many years. If your entire portfolio traded like ARNA, you would be going broke. That said, I own it also with a nice size position.....selling two thirds now as I can picking my price point to exit. This does not meet my objective any longer of a good return. My money has to go to work where it earns, I guarantee you can buy back in when the time is right, and Arena is on solid ground financially....at that time Wall Street will reward them with stability and growth PPS value in the market. That time may be $10 pps going to $15, or $7 going to $12. Either case you make $5 gain per share and that makes you money while you sit on the sideline with your dollars making money elsewhere. GLTA
Been here 5 years plus......Don't jump in feet first, especially if you can't stomach the roller coaster ride. Shorts are a big controlling factor in the market, and ARNA. The stock trades below $5....many high quality advisory firms won't touch stock below $5 and that applies here. Those that own it heavy, hedge their bets, you can be sure of that. If you want to own it long, buy a stake and watch the trade pattern, buy again when it drops. There will be another dilution about the time some good news takes shape......two steps forward, and one step back. Invest with caution not greed, the pipeline is a long way out from any dollars in the bank, after years of millions in spending to get approved maybe on the first submission to FDA. High hopes are for fools.
Right again JD, lucky if we get any answer on EU approval by year end, and then maybe some kind of sales numbers by mid to late 2016. Could very well be some other testing info they want confirmed to their satisfaction before going to market. The road is still long before I jump up and shout....pps might bump a buck or two upon a clean EU approval.
Take a little bit from every post that makes sense to you. It's your money, then do as you wish. There are a lot of fools giving advice, and some very smart people giving advice. Depends on which side of the trade you are on to take action or not based on your risk vs reward.
My commercial message...."Hey you watching this TV commercial, get off your #$%$ tomorrow and call your doctor to begin losing weight." This message is brought to you by Belviq ask your doctor about the benefits and side effects.
You boneheads still don't get it ! Marketing and price point are not going to move the pps needle in a significant manner. That's beginning to become clear. Fat people need to get off their collective #$%$ and do something about their overweight condition. The doctor's are the front line in this battle to have a straight conversation with every obese patient to push them forward to take some action on their weight problem. They write the scripts, not TV ads. The ads should focus on overweight conditions, and resulting problems in a serious manner to discuss and take action with their doctors guidance. People need to wake up, and take action.....a change of the individual patient awareness about the serious issues of being overweight. So far we don't have a blockbuster going down this path, we need a drill sgt. calling out the fat people to attention on deck. This direction of TV ads supports the doctors direction and advice as they alert their fat patients for a need to change.
My view on this is Jack has a project so large that debt financing was out of the question. Also I believe they have calculated the long term funding they will need for the project and have set aside the shares to fund it. They will make a further dilution as needed sometime down the road if this is the case.
I think Eisai may be a better investment than ARNA. At least you get a divvie and it's close to a 52 week high.
Buy buy buy.....I like it.
Where does that leave us as stock investors? I subscribe to the “pecking order” theory of the cost of capital, which says that firms use the cheapest form(s) of capital to fund their incremental financing needs, which means they should rarely issue equity. The exception would be if they are undertaking a project so large that it would make the company significantly more risky if they were to issue only debt for financing.
Does this answer any questions for stock investors...........comments & thoughts?
More shares are already approved and filed with the sec if and when they need them. My feeling is they would not have voted for significantly more shares to be sold if they did not think they will need them. There will be another dilution down the road.....personally I am getting out before then. Tired of waiting, tired of share dilution, tired of no growth, lost confidence in the CEO. Watch and learn....about the time it gets to $7 another 10mil shares will be tossed on the pile......back to $4.75 then.
How soon will the collective "WE" get a boost in the price per share as it trades daily? The collective "I", says not very soon from this news, and the ARNA beating by the shorts, and market hedge fund crooks will continue. I appreciate your informative post, and some day they may translate into $$ in my pocket after holding five years.
We were supposed to get the cash from a partner....no one knocked on the door with an offer, and now we got a share dilution. That stinks, wake up.
I viewed a new commercial today. Some hope, it's about the best one out so far.