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OREX 6/3 Conference Call Provides Trading Opportunities

publication date: Jun 1, 2011
 | 
author/source: Mark Messier
This morning in premarket trading OREX announced the hosting of a conference call for pre-market on Friday Morning (June 3rd).  This conference call will provide a 'regulatory update'.

First off, I would like to thank OREX for providing us this great trading opportunity.  As most know, pre-announced conference calls often result in a run-up in share price, as it gives traders time to speculate.  This has been the case in premarket.  After I read the news I bought 2500 shares at $3.10, the stock has since traded as high as $3.35.

Take a look at the PR below:

SAN DIEGO, June 1, 2011 /PRNewswire/ -- Orexigen® Therapeutics, Inc. (Nasdaq: OREX), a biopharmaceutical company focused on the treatment of obesity, will announce a regulatory update on Friday, June 3, 2011 before the markets open.  The announcement will be followed by a live webcast and conference call at 8:00 a.m. Eastern time.

Orexigen management will host the call and webcast to discuss this update. The live call may be accessed by phone by calling (866) 730-5771 (domestic) or (857) 350-1595 (international), participant code 27244834. The webcast can be accessed live on the investor relations section of the Orexigen web site at www.orexigen.com  and will be archived for 14 days following the call.

Lets step back for a second.  In my opinion this is not going to be stellar news.  Likely they received guidance on the future clinical trials they will be expected to perform before they can resubmit Contrave.  These catalysts will likely take the company years to complete.  That being said, there is NO way I will be holding my shares into the conference call.

In fact, in this type of scernio I may risk my profits into buy 'Puts', betting on the fact that this will sell down on the actual news.  Either way, trading opportunites abound.