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ARENA OBESITY DRUG APPROVAL MAY SIGNAL FDA OPENING UP FAT PILL FLOODGATES

June 27, 2012

The U.S. Food and Drug Administration (FDA) has approved the first obesity drug in 15 years. The drug is lorcaserin, dubbed Belviq, from Arena Pharmaceuticals (ARNA). The drug works by affecting the area of the brain that regulates metabolism. The issue with weight loss drugs has not been efficacy, rather the side effects. The drug from Arena works similarly to Fen-phen. Fen-phen was banned about 15 years ago in the aftermath of serious side effects related to heart valves. The drug will be marketed by a Japanese company,Eisai. Projections are that lorcaserin will become a $1.5 billion drug. Jack Lief,

NEW IDEA ON OREXIGEN THERAPUTICS (OREX)

June 27, 2012

This post was published earlier on ZYX BuyChange Alert OREX is a sympathy play with ARNA. FDA has just approved ARNA weight loss drug. The risk is very high and this trade is only for aggressive investors. Buy zone is $3.90 -4.61. Stop zone is 3.43-3.73. Target zone is $6-7.50. This is a highly speculative position, please be sure to follow the Trade Management Guidelines. Only aggressive investors may chase the stock higher than the top band of the buy zone.

WHY FACEBOOK FORCING ITS EMAIL ON YOU IS BRILLIANT

June 27, 2012

Facebook (FB) took a brilliant step in the right direction by making the visible email on a person’s profile @facebook.com by default. Long ago I learned that change has unintended consequences. The unintended consequence of the change that Facebook has made is that media has blown up with extreme negative reaction. Some outrage is understandable because Facebook made the change without user’s consent. In my view the change is brilliant because it is good for the users, the marketers, and Facebook. I write about investments, this change is good for potential Facebook investors. There have been a lot of privacy

APPLE BETTER OFF WITH LICENSING THAN PATENT WARS

June 27, 2012

Apple has been pursuing a scorched earth litigation strategy using its patent portfolio againstGoogle and its Android mobile operating system. Shareholders and gurus almost universally support this strategy. Either there are not many who see Apple’s strategy as flawed or those who see the strategy as flawed are hiding under a rock. I do not blame anyone for not voicing an unpopular opinion. Who needs the hate mail? I distinctly remember the amount of hate mail I received after I wrote an open letter to Tim Cook on December 29, 2011, pointing out the flaws in Apple’s strategy and suggesting an alternative

JUDGE TOSSES APPLE’S CASE AGAINST MOTOROLA, APPLE MANAGEMENT MESSES UP

June 27, 2012

Apple and Motorola have been vigorously fighting patent lawsuits with each other. Motorola Mobilityis simply a proxy for Google because it is now owned by Google. A federal judge in Chicago has formally dismissed a patent case brought by Apple against Motorola with prejudice. ‘With prejudice’ means that neither side can refile the case, however they can appeal the judge’s decision. In my opinion, this is a big loss for Apple in the long run as it will allow Google to compete more effectively against Apple. Apple has a reputation for doing everything very well. The irony here is that Apple doomed its case by its own

DOWNGRADE A POSITIVE FOR 3 BANKS

June 27, 2012

On Thursday, Moody’s downgraded 15 banks. On the surface it seems counterintuitive, but the downgrade is positive for JP Morgan (JPM), Morgan Stanley (MS) and Bank of America (BAC) . My 30 years in markets have taught me that it is always positive when an overhang is lifted. Back in February, Moody’s telegraphed that it had launched a review of 17 global banks with capital market operations. Moody’s reasoning was that difficult operating conditions, increasing regulation, and lower levels of growth. The rating cuts are considered negative because they increase funding costs as the banks may have to pay more

HOPE FOR GOLD BULLS

June 27, 2012

Traditional technical analysis is more of an art than a science. Experienced practitioners of the art of technical analysis can look at the same chart and come to different conclusions. The way we resolve various contradictions is by backtesting and taking only those signals that show high probability of success in backtesting. We have found that signals based on multiple traditional techniques are more reliable than just one technique. Right now, a confluence of a traditionally well understood chart patterns combined with some traditional indicators on charts of gold ETF GLD and silver ETF SLV is showing some hope for the

APPLE LOCKS IN LIQUIDMETAL FOR TWO MORE YEARS

June 27, 2012

Imagine iPhone 5 looking as though it is made of a liquid metal, and feels like a liquid to the touch. Imagine a case more than twice as strong as titanium. Imagine no scratches or smudges. If Apple (AAPL) pulls off such an innovation in iPhone 5, it will be a coup, giving Apple another edge over its competitors. A recent SEC filing provides fresh evidence that Apple seems to be very interested in dealing with a company that makes such “liquid metal.” A small company named Liquidmetal Technologies (LQMT). The company has developed a series of amorphous metal alloys that are sold