This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Arena Pharmaceuticals And 6 More Stocks To Watch

Rising short-interest indicates bearishness for the company is building up by investors. Between November 30 2012 and December 14, short-selling increased between 1% and 15% for a number of biotech companies. Rising short-selling could mean upside if the prospects for the companies improve.

The short-selling volume, sorted by change, is listed below:

Screen shot 2013-01-07 at 11.07.27 AM

Are short-sellers wrong? Below is a summary explaining why investors are negative on some of these companies.

Business Section: Investing Ideas  

Amarin Corporation (AMRN) investors were disappointed that the company will be hiring its own sales force. Amarin has yet to announce a partner, which added to the disappointment. The company recently submitted a supplemental New Drug Application to the FDA for Chemport, Inc. The company is a supplier for an additional active ingredient for Vascepa.

Bearishness rose by 8% for Savient Pharmaceuticals, Inc. (SVNT). In November, the company reported quarterly earnings that missed estimates by $0.08 per share, while revenue of $4.5M missed estimates by $1.3 million.

Amgen Inc. (AMGN), whose market share is $65 billion, continued to declined recently. The company pleaded guilty and settled a criminal and civil liability for promotional activities around Aranesp. The settlement amount is $762 million.

Short-selling increased 5% for Dendreon Corp. (DNDN). Shares rallied 41% from a low. The company sold its immunotherapy manufacturing facility for $43M.

Exelixis, Inc. (EXEL) shares continued lower after bears covered the bets. After rising to $5, shares traded recently at $4.51. On November 30, the company said it received approval for a drug to treat a rare type of thyroid cancer.

Avanir Pharmaceuticals (AVNR) reportedquarterly earnings in mid-December that missed estimates, although revenue was higher than expected. The company reported revenue of $13.5 million.

Arena Pharmaceuticals, Inc. (ARNA) is the maker of Belviq, a drug used to treat obesity. Its partner, Eisai, wants to get faster approval, which would mean the drug would be available at pharmacies on February 7 2013.

(List Average 1-Year Return:  62%)

Additional Observations

Arena shows great promise in further upside. Its competitor , VIVUS (VVUS) saw short-selling decline, but investors should add Arena to their watch list. In its last quarter, Arena reported revenue that missed estimates, but earnings per share surprised investors. Responders who took the drug reported an average weight-loss of 11%.

In 2013, sales of Belviq should begin to support a higher share price. Arena is just waiting on the DEA scheduling right now. Also in the pipeline and in phase 1 trial is PAH APD8111, which is being tested for the treatment of autoimmune disease. If successful, this would broaden Arena’s product line.

Written by Kapitall’s Chris Lau


Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs