Monday, July 26, 2010

VVUS Turned into a Nice Trade

On July 16, Vivus' stock price got cut in half when its new weight loss drug, Qnexa, was rejected by a count of 9-7 by an FDA panel.  I said you could buy it because it has a descent pipeline, including an ED drug in Phase III testing. Also they have several investigational product candidates in late stages of clinical development.  I said you could buy at 5.20/share and look for about a 10% bounce.  Initially, the stock continued to sell off, but we got the bounce we were looking for.  It reached a high of 6.04/share on July 22.  I called it quits on this stock this morning at the open at 5.75/share.  No reason in staying in this volatile stock any longer, we got the 10% bounce. 

Trade dates: July 16, 2010-July 26, 2010
Bought: 5.20/share
Sold: 5.75/share
Gain: +0.55/share
% Gain: +10.58%

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