Yesterday, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) stock returned its upward march on the echo of the VIVUS, Inc. (NASDAQ:VVUS) stock drama.After last Friday’s VVUS stock crash, resulted from the negative vote for its obesity drug, the gates of competitor’s glory for ARNA stock were opened.
Last Thursday, one day before the above mentioned VVUS shares drama, ARNA stock closed the trading session with a 8.41% price decline in a heavy volume.
The next day, on no news and events for the company, ARNA shares jumped 18.88%, again on a representative volume.
Ar the beginning of the week, investors devoted to the glory of competitor ARNA stock. After two sessions of slight pull back, yesterday ARNA shares restored positions closing at $5.32, as in an attempt to confirm the growth over the $5 price. The lower movement of the volume, comparable with those of starry Monday, presented investor uncertainty to overcome the 52-week high and maybe, their uncertainty of the further ARNA price direction.[BANNER]
At the same time, VVUS closed at $5.78 with an only 2.48% increase.
The comparison between the stock characteristics of both companies shows that they have a lot of similarities.
The market value of ARNA is $597M, while VVUS has $467M.
EPS ratio for both companies is negative. For ARNA it has value of $1.51 and for VVUS it is $0.88.
Measuring the shares’ risk using the Beta coefficient shows that ARNA’s stock is less risky with a Beta of 0.86. VVUS’s Beta is 1.63.
Since the similarity and distinction between the securities of these two companies has been presented, it is worth to mention one more issue. This is the issue of stock alerts.
Similar to VVUS, this month ARNA stock was also promoted in stock marketing letters. The last disclosure about a not paid-by-the-company stock promotion is from the above mentioned last Thursday, when ARNA shares were in a deep depression and lost a lot of weight.
