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Arena Pharmaceuticals (ARNA), Azimuth Opportunity Ltd, Stansberry Research And The Magic Fat Pill

Posted by Timothy Sykes on Mon 30th of Mar, 2009 11:00:15 AM

Remember ARNA and their allegedly amazing fat pill?

Well today their fat pill failed to make fat people less than 5% fat, which on Wall St. means it ain’t worth jack…and the stock is down 25%, more than 40% since CNBC and a crappy newsletter hyped it up a few months back….

See my old post about it how dozens of TIMalert subscribers and I profited when the hype from the CEO’s CNBC appearance (the CEO was soooo sure of himself, anytime anybody in penny stock land is that sure, they’re either a fool or a fraud, I don’t care which one this dude is, either way, these things are ALWAYS great shorts on hype) mixed in with a “this stock can make you rich” commentary from Stansberry Research (I mistakenly said Agora Financial, that company has sooo many different “newsletters”, I sometimes get confused) but understand this today’s failure means 3 things:

1. CNBC gave a struggling biotech the spotlight which it probly never deserved…do more/ANY research next time.
2. Azi-whatever you wanna call them Fund, who invested, $50 million into ARNA a few days ago, are complete suckers, time to change the name to hide this embarassment guys!
3. Stansberry Research–which is the only company to ever email me to complain about a post, defending their “research report” which is posted entirely below, saying their analyst has a PhD (a PhD in being a hypester/sucker?)–doesn’t understand how penny stocks are pumped (I find that surprising considering their alleged expertise and great experience in this niche)

Behold, Stansberry’s “research report” entitled “The Magic Pill” (the magic of penny stock hype/BS!) and please learn this is the kind of “research” that shady Wall Street puts out on penny stocks “these stocks can make you rich…” yada BS yada BS yada…c’mon people, expect more:

“This is the kind of situation that can change your life… where a
$10,000 stake can allow you to literally quit work, forever.”
- Porter Stansberry, Founder, S&A Research

Dear Reader,

We’ve waited 2 years for this day.

On March 30th, there’ll be an announcement of FDA results for a new drug that could create the single biggest return of any investment we’ve ever found, in 10 years.

“All eyes are on the data,” says Business Week. “It could be a multi-billion dollar drug, and so far, all the numbers have been positive.” BioWorld writes: “It could be the largest pharmaceutical market ever.”

When you see (below) what the drug treats… I think you’ll see why S&A has now spent over $200,000 since 2006, uncovering the full details.

“It’s the perfect storm,” writes drug expert Jack Windin. “A totally new chemical entity with virtually no competition.”

So far – the drug has successfully cleared both Phase 1 and 2 FDA clinical trials… and is just weeks from the announcement of Phase 3 results… the last trial before it could launch on a scale potentially unseen since the release of penicillin.

As Forbes reports: People across America are already writing letters to the small company who owns the patent… asking: “How can I get your drug?”

But the big question, of course, is: “Will the drug be approved by the FDA?”

By March 30 – we’ll hear the official announcement of test results. It’s a decision we’ve been following daily since trials first began more than 2 years ago.

And while most people have no idea what will happen… we’ve been able to access early results directly from the company, and they’re even better than we hoped.

In short: as of Dec. 15, 2008, early clinical results suggest the drug is safe… has a near-perfect success rate… has a 500% efficiency… and finally, get this: will target 45% of the U.S. population – almost 1 out of 2 Americans.

As one FDA expert puts it: “If results on March 30th turn out even half as good as we expect… this could be the best-selling drug in the history of medicine.”

Best of all: All the rights to the drug belong to a single company, a penny stock. At today’s prices… a 4-point jump alone would double your money.

In other words: if the results are positive for this new drug on March 30th as we expect… a single stake in this company could make you a fortune, overnight. We estimate as much as $195,600… but only if you get in right now (you’ll see why below).

Again, we’ve waited 2 years for this day. It’s the kind of situation we built our firm on back in 1999… investments that can literally change your life.

Let me give you the full story…

Forbes: “The magic pill”

Years from now – and perhaps for the rest of their lives – a small group of people will remember exactly what they were doing on March 30, 2009.

You see, by that morning, there will be an announcement that’s unlike just about any other FDA-related release. It’s the single announcement that allows regular investors like you and me the rare chance to make a small fortune…

When Celgene (CELG) heard a similar announcement in 1998, for example, the stock returned 1,002%… turning every $5,000 into $50,100 profit. (We’re expecting an even bigger return this March.)

The same thing happened in 1991 to Amgen (AMGN) – which immediately doubled… and went on to gain an unbelievable 1,700%.
In short – by March 30th… we’re expecting an announcement of something more than just new drug approval…

Quite simply, we expect approval for a new drug unlike anything to ever go public in the 81-year history of modern biotech. It’s a drug that simply hasn’t existed, in any useable form… until the company I’m telling you about invented it.

And yet it offers the one cure that almost everybody wishes for – at some point in life. (Don’t worry, I’m not talking about something farfetched, like a cancer cure… or a fountain of youth.)

These results could launch “the bestselling drug in the history of medicine.”

In fact, chances are you know someone who could benefit from the drug, and will even prescribe to it… after test results come out by March 30th.

The drug could help so many people a neuroscience writer in Dallas went as far as to say recently, “The FDA should lower requirements and speed up approval.”

It’s been described by even conservative health writers with words like: “runaway bestseller”… “blockbuster potential”… and “sell like gangbusters.” Forbes wrote of the “magic pill,” and went on to say:

“If approved, it could be a billion-dollar drug.”

And so it goes, the old penny stock pump, so much for Stansberry’s “we’ve been able to access early results directly from the company, and they’re even better than we hoped.” What a friggin joke!

Please reblog/reTweet this post, do whatever, this is the trash that people need to know about. (Understand I don’t want Stansberry out of business, their pumping provides great short opportunities…I simply want you guys to learn how the system works so you can profit from it, just like my TIMalert subscribers, PennyStocking DVD students and I do!)

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Tags: ,

  • actually i did profit from this, even though i screwed up a bit...i dont care, as long asi put a dent in all the manipulation, i'm doing something good
  • Mrs. Fethcing
    someone will make money from this, maybe not you idiot. or the company,
    but somebody will
  • bob, the pump was over before this, this is just struggling penny stock reality
  • Bob
    Tim gotta disagree with you here. Short term the news was neutral today, and with all the pump couldn't help but create a selloff. Shorting into this news would have been insane. It satisfied the FDA efficacy guidelines. It's "miss" was on an alternative method of efficacy, per FDA guidelines. It will be approved eventually and I gotta believe that if it holds at current levels it could be a buy on this news. (short term) I know you agree, especially if it breaks 3.50 or 4 again. Can't help but think the MM's were running the show today on it, especially since there were thousands of call options open. I also noticed that 28K of April 5's traded today, i am sure most of them were to close the position. Now they're about equal on the 5$ puts v. calls. I am looking at them holding this steady until options expiration to bleed the rest of the delta out of this play, before any movement, unless price action tells me different. They could let it run up to 5 to pinch the puts but only after they get rid of the april 5 calls.
  • AdamN
    Great Post! I remember ARNA from last month, made over $1k shorting that supernova around $7.75. When will people learn that "Magic Pills" have never and will never work, but as long as they believe it, I'll be more than happy to capitalize on their stupidity. I've reshorted a small position in ARNA at $3.21 and will probably add to it on any short covering spikes. I'm hopeful we'll see this stock well below $3 and hitting new 52 week lows by the end of the week.
  • Tom
    That's terrible when you have been waiting two years for this. I would short this company down all the way. They won't be around in 6 months.
  • alex
    bwyaahaha - what a complete load of bs (kinda sounds like something written by the motley fool). Shorted this crap at 3.04 to ride it down to the pennys ... they have a 90% chance of total failure. Good long term short as institutions will jump ship soon as the CEO's "everything is okay" message wears off.

    Too bad for these companies that they have to get approved by the FDA. If they didn't have that to worry about then fat people would buy their toxic snake oil by the barrel and it would be a great investment.
  • now CNBC blaming ARNA for being unprofessional:

    http://twitter.com/timothysykes/status/1418455859

    how about blaming yourselves for being suckers and not understanding the companies on which u report?
  • dman now the stock is down 35% todya, how u like stansberry? feel free to leave a comment below with your "analysis" lol
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