Friday’s Top 3 Hot Stocks to Watch
Chelsea Therapeutics International Ltd. (CHTP)
Chelsea Therapeutics International Ltd. (Nasdaq: CHTP) is a biopharmaceutical company developing prescription products in multiple therapeutic categories such as RA, psoriasis and other inflammatory conditions. These high-potential global opportunities are balanced by the development of the company’s orphan drug candidate Droxidopa, an oral therapeutic currently approved and marketed in Japan, for the treatment of neurogenic orthostatic hypotension.
|
Share Statistics Oct-02-09 |
|
2007 |
2008 |
%Chg |
Q2 2008 |
Q2 2009 |
% Chg |
|
|
Symbol |
CHTP |
Revenue, Mn |
0 |
0 |
0 |
359K |
4K |
98.89% |
|
Current price |
$2.92 |
Gross margin |
100% |
13.2% |
86.8% |
15.4% |
33.3% |
53.8% |
|
52wk Range: |
$1.09-$7.51 |
Oper. margin |
-818.8 |
-2,428% |
66.3% |
-25.2% |
-13.8% |
45.2% |
|
Avg Vol (3m): |
1,580,940 |
Net margin |
-742% |
-2424% |
69.3% |
-2511% |
-1583% |
36.9% |
|
Market Cap. |
97.97M |
|
|
|
|
|
|
|
Investment Highlights
Shares of the company surged 19% Thursday’s trading after the company announced additional analysis for a late-stage trial of its drug Droxidopa for the treatment of neurologic orthostatic hypotension. CHTP said Droxidopa’s study results showed significant improvements across five clinically relevant assessment criteria. The company said the data also supports the “exceptional safety and tolerability of Droxidopa.
The news follows the company’s announcement last week that preliminary results (the first of two pivotal phase III trials) for Droxidopa “did not demonstrate a statistically significant improvement relative to placebo.”
“We are encouraged by the breadth and depth of findings from Study 302 that demonstrate a symptomatic benefit and provide validation of the safety and tolerability of Droxidopa for the treatment of neurogenic orthostatic hypotension — a serious condition with an urgent need for improved treatments,” Dr. Simon Pedder, president and CEO of CHTP stated in the press release. “In looking ahead, we believe these results will be evident in the results of Study 301 expected this quarter. Further, we believe the outcome of Study 301 may be enhanced by the washout period included in that study. This belief is supported by open-label data from Study 301 that demonstrate a marked return of symptoms prior to randomization. The increase in average dizziness score from 1.0 following dose titration to 5.4 after a 7-day washout period in Study 301 suggests a reduction in the carry-over effect that appeared to follow sustained drug treatment prior to randomized withdrawal in Study 302.”
Technical Analysis
Moving Average Price Compare
ARNA is trading below its 50 day moving average. However, this moving average is trending higher which suggests that there has been buying interest in this stock.
MACD
The MACD for ARNA currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.
Arena Pharmaceuticals Inc. (NASDAQ: ARNA)
Arena Pharmaceuticals Inc. (ARNA) is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs in four therapeutic areas: cardiovascular, central nervous system, inflammatory and metabolic diseases. The Company’s drug candidate, lorcaserin hydrochloride (lorcaserin), is being investigated in a phase III clinical trial program for the treatment of obesity. It has a pipeline of compounds that target G protein-coupled receptors (GPCRs), and includes compounds being evaluated independently and with its partners, including Merck & Co., Inc. and Ortho-McNeil-Janssen Pharmaceuticals Inc. On January 9, 2008, the Company acquired from Siegfried Ltd certain drug product facility assets, including a licensed production facility, fixtures, equipment, other personal property and real estate assets in Zofingen, Switzerland.
|
Share Statistics Oct-02-09 |
|
2007 |
2008 |
%Chg |
Q2 2008 |
Q2 2009 |
% Chg |
|
|
Symbol |
ARNA |
Revenue, Mn |
19.3M |
9.8M |
49.2% |
359K |
4K |
98.89% |
|
Current price |
$4.05 |
Gross margin |
100% |
13.2% |
86.8% |
15.4% |
33.3% |
53.8% |
|
52wk Range: |
$2.26-$7.42 |
Oper. margin |
-818.8 |
-2,428% |
66.3% |
-25.2% |
-13.8% |
45.2% |
|
Avg Vol (3m): |
4,886,090 |
Net margin |
-742% |
-2424% |
69.3% |
-2511% |
-1583% |
36.9% |
|
Market Cap. |
391.8M |
|
|
|
|
|
|
|
|
Dil. Shares Outst. |
92.6M |
EPS, $ |
-2.31 |
-3.24 |
73% |
-0.47 |
-0.59 |
26% |
Source: http://finance.yahoo.com/q?s=ARNA, https://trading.scottrade.com/quotesresearch/ScottradeResearch.aspx?page=markets , http://www.reuters.com/finance/stocks/incomeStatement?stmtType=INC&perType=INT&symbol=ARNA.W
Investment Highlights
ARNA reported positive, highly significant top line results from the BLOSSOM (Behavioral modification and LOrcaserin Second Study for Obesity Management) trial. BLOSSOM confirms the results previously reported for the BLOOM (Behavioral modification and Lorcaserin for Overweight and Obesity Management) trial and completes the lorcaserin Phase 3 pivotal registration program of 7,190 patients evaluated for up to two years. Arena plans to submit a New Drug Application, or NDA, for lorcaserin to the US Food and Drug Administration, or FDA, in December. In the one year BLOSSOM trial, lorcaserin met all primary efficacy and safety endpoints. Patients achieved highly significant categorical and absolute weight loss. Lorcaserin was very well tolerated and was not associated with depression or suicidal ideation. The integrated echocardiographic data set from BLOSSOM and BLOOM rules out a risk of valvulopathy in lorcaserin patients according to criteria requested by the FDA. Treatment with lorcaserin also resulted in significant improvements as compared to placebo in multiple secondary endpoints associated with cardiovascular risk.
63.2% of patients lost at least 5% of their body weight
35.1% of patients lost at least 10% of their body weight
Patients lost an average of 17.0 pounds, or 7.9% of their body weight; and
The quartile of lorcaserin patients with the greatest weight loss (among those with a Week 52 weight recorded) lost an average of 35.1 pounds, or 16.3% of their body weight.
Source: Scottrade.com, Reuters.com, http://biz.yahoo.com/e/090918/arna8-k.html
Technical Analysis
Moving Average Price Compare
ARNA is trading below its 13-day moving average, signaling a bullish sign as the moving average is trending lower.
MACD
The MACD for ARNA currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.
Source: www.stockcharts.com
Apple Inc. (NASDAQ: APPL)
Apple Inc. (APPL), designs, manufactures and markets personal computers, portable digital music players, and mobile communication devices and sells a variety of related software, services, peripherals and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers and value-added resellers. In addition, the Company sells a variety of third-party Macintosh (Mac), iPod and iPhone compatible products, including application software, printers, storage devices, speakers, headphones and various other accessories and peripherals through its online and retail stores, and digital content through the iTunes Store. It sells to consumer, small and mid-sized business (SMB), education, enterprise, government and creative customers.
The Company offers a range of personal computing products, including desktop and notebook computers, server and storage products, related devices and peripherals, and various third-party hardware products. The Company’s Mac desktop and portable systems feature Intel microprocessors, the Company’s Mac OS X Version 10.5 Leopard (Mac OS X Leopard) operating system and iLife suite of software for creation and management of digital photography, music, movies, digital versatile discs (DVD), and Website.
|
Share Statistics Oct-02-09 |
|
2007 |
2008 |
%Chg |
Q2 2008 |
Q2 2009 |
% Chg |
|
|
Symbol |
AAPL |
Revenue, Mn |
24.0B |
32.5B |
26.2% |
N/A |
8.2B |
N/A |
|
Current price |
$185.48 |
Gross margin |
34.0% |
34.3% |
0.8% |
N/A |
36.3% |
N/A |
|
52wk Range: |
$78.20-$188.90 |
Oper. margin |
18.4% |
19.3% |
4.7% |
N/A |
20.4% |
N/A |
|
Avg Vol (3m): |
16,274,800 |
Net margin |
14.5% |
14.8% |
2.0% |
N/A |
14.7 |
N/A |
|
Market Cap. |
162.0B |
|
|
|
|
|
|
|
|
Dil. Shares Outst. |
895.8M |
EPS, $ |
3.93 |
5.36 |
26.6% |
1.16 |
1.33 |
12.8% |
Source: https://trading.scottrade.com/quotesresearch/ScottradeResearch.aspx?symbol=AAPL, http://finance.yahoo.com/q?s=AAPL , http://www.reuters.com/finance/stocks/incomeStatement?stmtType=INC&perType=INT&symbol=AAPL.O
Investment Highlights
It was recently reported that AAPL was sued by a Colorado resident who accused it of misappropriating an “iconic” photo he possesses for the Company’s iPhone. In a lawsuit filed with the federal court in Manhattan, widely published photographer Louis Psihoyos contends that the Company is using his ’1000 TVs’ image in its ‘i.TV’ movie guide application for the iPhone. The plaintiff accused the Cupertino, California based company of copyright infringement of his image, which was created in 2005. He is seeking actual damages and other remedies that together are “reasonably believed” to exceed $2 million, according to the complaint.
AAPL was raised to buy from neutral by UBS, which said iPhone prospects look bright. It also said Apple may be working on building out a foundation for a service to provide seamless access and mobility of digital content across its products. UBS upped its Apple target to $265 from $170.
AAPL today announced that more than two billion apps have been downloaded from its revolutionary App Store, the largest applications store in the world. There are now more than 85,000 apps available to the more than 50 million iPhone(TM) and iPod touch® customers worldwide and over 125,000 developers in Apple’s iPhone Developer Program.
Many analysts project sales growth of 10% for FY 09 (Sep.) and 14% for FY 10, and believe the combination of AAPL’s opportunistic management, brand recognition, and innovative, integrative and quality products will result in share gains in the computer, handset and MP3 player and related markets. Some also see iPhone and iTunes sales largely offsetting slower desktop and iPod shipments. In addition many believe the release of a tablet/mobile Internet device would provide incremental sales opportunities.
Source: Scottrade.com, Reuters.com
Technical Analysis
Moving Average Price Compare
AAPL is trading above its 50-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.
MACD
AAPL’s MACD is indicating a weak bearish signal. Although the indicator is above the critical level of 0, which implies that the underlying moving averages are bullish, the MACD has crossed below its 9-day moving average or signal line. This suggests that positive momentum has begun to slow.
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