Wednesday, December 8, 2010

Do not let go of your OREX shares!!!

In case you haven't heard, Orexigen Therapeutics is up over 100% today on approval of its diet drug Contrave. Its hard to gauge an exact worth of a company after something like this has been done so I always look for previous examples and try to guess what will happen from there. The most similar case to OREX was what happened to DNDN in March 2007. Now check out these price histories on the stock:

DateOpenHighLowCloseVolumeAdj Close*
Apr 10, 200724.8525.2520.2622.1566,675,00022.15
Apr 9, 200720.0024.2719.8623.5878,665,10023.58
Apr 5, 200715.1018.2814.8418.0560,174,80018.05
Apr 4, 200715.0015.1514.6615.0813,677,80015.08
Apr 3, 200714.4715.4014.4714.6525,813,60014.65
Apr 2, 200713.2514.9913.1014.3043,706,30014.30
Mar 30, 200717.9218.0512.0012.9392,499,20012.93
Mar 29, 20075.
Mar 28, 20074.855.344.485.2232,840,9005.22

After a strong open on March 30th, the stock ended rather weakly. But within a few days the stock recovered to its prior high and went as high as $25 by April 25th. It came back down to earth after that, but that just goes to show you that the time to sell your OREX shares is not today, it's a couple weeks from now. Let those shorties burn a bit!!! No matter how weak the stock price gets, hold on. DNDN dropped from $18 to $12 so there were a lot of weak handed day traders that lost 30% that day who could have gained 30% if they were two-week traders.

ARNA and ETRM are also being pulled up by OREX today. You can read my bullish blog article here.

Back to my blog

No comments:

Post a Comment