Nascar, not US but HFs will take Arena down destroying a lot of retailers. Eventually they'll play with the $1 line and Arena may execute a reverse stock split before refinancing. Ugly stuff. Be prepared.
THEY'll milk it right down below $1.30 and HATE US for warning you but that's what's going to happen. Once below $1.30, THEY'LL play with the $1 delisting line in 2016.
THEY aim to destroy retail.
If wearing rose colour glasses is your thing, so be it. WE maintain market forces will take down Arena along with the rest of the market. It will be then that savvy buyers will acquire what they determine is under-valued.
Arena really doesn't have a valuation until it's under $1.30 even near $1 until corporate takes steps to add value.
-sv (Negative WE are)
Could be below $1.30 by Friday too. Hixson's exciting news pertained to trying right Jack's wrong, but that doesn't change how market conditions are deteriorating. The global industrials are a mess and many are falling and have been falling for weeks. Eventually Arena along with the rest of biotechs will join the global deterioration.
Of course everyone seems to want to think all is bullish after the ten percent correction. Really? Have your opinion but WE'll gladly watch the market decline and welcome Arena shares into OUR hands when it falls to all-time lows.
-sv (Negative Nelly)
Sure! Sure! WE're all suppose to buy into the hype of this over-bought frothy market while oils about ready to fall off another cliff and the FED is dropping big hints of raising interest rates. So how does this impact Arena? Simply because the global markets are heading lower despite the bullish head-fake which is why a lot of investors are really pessimistic that all this was was a ten percent correction and now we go higher.
When the market falls, and surely it will, it will bring down all stocks including Arena that will quickly go below $1.30 perhaps even play with below $1 in 2016. If you honestly think buying Arena in the $1.80s is a bargain you not even considering its already gone lower before and will break below that low to a new low as HFs try to lure people into thinking Arena's worth $1.80. Well, it isn't given the truthfulness of Hixson who to his credit tried to explain how he working to turn the company around and Jack nearly destroyed it.
Of course if you want to buy Arena shares now the only thesis for doing that would be because you think there's a high probability of a buy-out right now. But then why would BP spend the money now when market forces are already going to take it much lower?
Buying Arena stock is simply a matter of waiting. Waiting to it falls into the pit.
-sv (Negative Nelly)
200 plus employees are NOT needed to manage identified drugs through the pipeline -- just look at Acadia. Arena has a pipeline but it doesn't need 90% of its employees when the work can be outsourced for clinical development. So what's Arena doing?
They are shopping the downsized firm on the hopes on saving jobs. But whether any BP buys that stiche one things for certain -- other than Behan, the executive team and upper level managers better be looking for new employment.
BP won't retain many except the validated patent generators, inventors, and top minds that exploited Arena's science. Middle and upper managers will be shown the door. Audet knows that and that's why he's looking for a new gig.
The hardcore reality is that crafty seasoned Hixson put on Arena on the market today FOR SALE. Now it's out in the open.
-sv (STRONG AROMA)
Hixson made it plain didn't he? Belviq's future is hinged on CVOT 2018. Eisai's lost money and will lose more money. Eisai wants to cut ties ASAP. Arena, however, can reclaim Belviq value whatever that is -- BP could easily run the FDA required Phen- or Smoking trials including cocaine, etc.
No way on Earth Eisai ever gets into a bidding war for Arena. Arena's been a nightmare for Eisai. BP knows that too.
Thus, the FIRESELL OF THE PIPELINE. Audet sounded like a guy sending out his resume (Europe has been a complete failure.... Canada followed... Brasil is really unlikely). The search for a CEO and CFO is a stall... Arena's being shopped.
LEAN and MEAN Arena about making the company attractive to a buyer. WE suspect Audet is soon to jump ship the day he gets a good job offer.
But to say that WS will support $1.90 is a joke in the meantime. Companies like Arena fall hard so that $1 shares can be swepted up before the buyout is announced.
Arena's not looking for partnerships. They're looking for a buyer and Hixson made that clear.
-sv (Sweet Liberty)
Downsizing Arena is for the purpose of selling Arena. Eisai will happily cut ties with Arena to get Belviq off its books. Jack was retired as retribution for the employees who as of now are unemployed and those who remain with Arena but have no certainty of having a job once Arena's is sold. Audet sounded like someone with the flu and it's obvious the BOD wants to package the firm to ring their own register and for all to get out.
Belviq's a flop. Temanogrel they don't mention. And then there's the rest of this high risk pipeline that has yet to prove anything.
-sv (Sweet Peaches)
Hixson has declared that ALL of Arena's pipeline is on the table. Hixson went so far as to say that Arena can't even promise a phase 3 for ANY drug, let alone phase 2 complete WITHOUT a partnership. Cutting 80 employees is obviously not enough UNLESS the goal is to package the company for a buyout.
Hixson advertised Arena for a buyout. No need for new CEO or CFO. Eisai will happily sell its stake in Belviq to the buyer to get out of the partnership.
Hixson's LEAN AND MEAN can only mean that Arena as a whole is for sale to the highest bidder.
PS - Audet sounded exhausted and defeated. He knows his employment clock is ticking so don't be surprised if you read he's pulled the trigger and has gone elsewhere. Separating himself from Arena is in his best interest. On a buyout he probably won't have a job. Expect Audet to exit ASAP.
-sv (Truth Network)
Perhaps the biggest positive was Hixson's willingness to speak the truth, as Audet sounded like a nervous Nelly. Hixson said it the way it is. Arena doesn't have the cash to move this pipeline into phase 3, let alone through phase 2, thus the pipeline firesale.
The irony is that Hixson's flat-honesty is a breath of fresh air after years of JL hiding behind his failed leadership. There is every reason to say that Arena is up for sale along with its pipeline.
So credit to Hixson though it's a little too late unless Arena pulls out a partner before Jan 2016. Hixson's old but WE'll vote for him come time for the next BOD election. Analysts were intimidated by Hixson as was Audet.
-sv (Sweet Smelly)
Hearing Arena's handling of the pipeline sounds like a
FIRE SALE of assets for a company losing money.
-sv (Bad News All-Round)
Geez, you can forget about a refiling in Canada too. Brasil is now in doubt, maybe Mexico. Boy is this disappointing!
-sv (Flu-like News)
Whatever came out of that meeting with the EU it wasn't promising.
-sv (Sickening News)
Honey, in Q4 the firing of Jack and employees will cost Arena MORE than keeping them. Furthermore, Arena is not controlling costs with Eisai's sales FALLING, and Arena's admission that cash is FALLING is telling.
The ONLY ONE SPINNING HERE IS YOU. WS's going to PUNISH THIS STOCK.
-sv (SMELLING WOO WOO POO)