ARNA, VGHI & Today’s Extended Watchlist

Arena Pharmaceuticals, Inc. ARNA

We have been covering ARNA for quite some time, since we learned of the possibility of an FDA approval. Yesterday that became a reality, with everyone and their brother discussing ARNA’s FDA approval, including the talking heads on CNBC. Around midday, the stock was briefly halted, before the announcement was made:

“On June 27, Arena Pharmaceuticals announced that the U.S. Food and Drug Administration (FDA) has approved BELVIQ as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in obese or overweight adult patients. BELVIQ is the first prescription weight-loss treatment approved by the FDA in 13 Years.”

Shortly following, the stock was reopened for trading, and trade it did! 90.2 million shares, over 4 times the 3mo. average, traded hands. ARNA rose to a high of 13.50. We first alerted ARNA on May 11th, after which time the stock was trading as low as 5.44. That would represent a gain of 148% to yesterday’s high of 13.50.

We feel that once the initial clamor subsides, and the volitility calms a bit, we should see a bit of a pullback, as is to be expected with most astronomical gainers. That being said, the long-term for this stock looks very promising indeed, so while the excitement should begin to die down, our interest in following ARNA moving forward will not.


VHGI Holdings, Inc. VHGI

Monday, we stated: “On Friday the stock saw abnormally high volume coupled with the 52-week low, prompting us to put VHGI back on our watchlist in anticipation of an eventual bounce.”

It seems we came to this observation just in nick of time. The stock was as low as .055 following this alert. Since then it has seen a high of .095, equating to a gain of 73%. Those that have been with us for awhile know we are not one hit wonders in most cases when we cover a stock.

We will continue to monitor VHGI as it recovers off of its bottom, and in reality, we would not be shocked to see it return to previous support and higher. When we first covered this play, it ran from .20 to .75, and thus huge gains do not seem out of the realm of possibility for VHGI.


Extended Watchlist:


EXTO, AGDY, APP, BPAX – Today’s Stocks

Exit Only, Inc. EXTO

EXTO has seen two consecutive days of gains. The RSI is creeping up, as the MACD has begun to diverge following its recent cross.

We are seeing a volume increase here as the chart begins to shape up quite nicely. This has been the stock that has brought us the most opportunities to profit in 2011, and at the rate we’re going, the same could hold true in 2012.

Agri-Dynamics, Inc. AGDY

AGDY was a fast moving momentum play, that caught our eye because of its heavy volume. Once the excitement settles and the momentum of the surge dies down, we will be anxious to see where AGDY finds its base.

The stock was under a penny at the time of our alert, .009 to be exact, and ended up hitting an intraday high yesterday of .02., for a lightning quick gain of more than 100%

American Apparel, Inc. APP

APP hit a high of .68 after being as low as .52 following our alert earlier this week. This represents a gain of around 30% for this retail play.

We mentioned that it is not uncommon to see stocks in this sector enjoy increased activity at holiday time, due to a frenzied shopping season.

BioSante Pharmaceuticals, Inc. BPAX

BPAX is a bottom alert this morning. The stock fell off of a cliff yesterday following news that one of its highly anticipated products, Libigel, did not meet expectations in the latest round of testing.

We always like to play the role of bottom-feeder when stocks like this take a major dive, as profits are made in the resultant recovery period. We are going to want to watch this one diligently to identify the bottom, and adjust our entry strategy accordingly.

Agri-Dynamics, Inc. – AGDY – Momentum Alert


Agri-Dynamics, Inc. AGDY

We have a midday momentum mover to point out today in AGDY. The stock came out of nowhere, having a recent pickup in volume. Accumulation is at an all time high, and should it continue along this path, we are sure to see added gains.

This is not a stock that we are previously familiar with, nor have we done a significant amount of DD, so we are going into this one blind. However, with momentum building like this, we couldn’t resist mentioning it. Another perfect example of a high risk, high reward play.