Somaxon Pharmaceuticals, Inc. (SOMX)

[Loonley Tunes]

Imo DNDN can not be compared to SOMX, because it had a cancer drug aproved. Better to compare SOMX with VNDA (Schizophrenia drug aproved)

VNDA went from 1$ before aproval to hod of 10$ on first day of trading. During the first day it had a 30% !!! pull back, finished at about 7.84$ ... i get scared ad i sold at 8.70$ the firs day .... The second day it went to 8.45$. Third day to 10.20$ and after the 4th day it was at 11.27$ and the 5th day it finished at 12.96$ then went down. Now is trading at 12$ range.

The chart:
http://stockcharts.com/h-sc/ui?s=VNDA&p=D&yr=0&mn=11&dy=0&id=p22366065488

Lot of stories were told about the Schizofrenia small market etc ... but in October 09 Novartis make an offer for that VNDA drug .

The whole story on VNDA
http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=VNDA.O×tamp=20090506223700

Imo there are two reasons why the price went down:
1. Good flip play during 2 days
2. Classical profit taking on friday (look at last hour .. from lod of 8.25 went to 9.35 half hour before market close and then a sell off happened.) If yesterday wasn't friday imo we will close in green.

And about insiders selling on SOMX:
http://www.mffais.com/somx
... lot shares were sold on 18.march 2010, but if you look back on VNDA, there the insiders selling happened to ...

Link on VNDA selling (you have to change the beggining date between 2009-04-11 and 2009-07-11)
http://www.mffais.com/vnda

The most important is that institutions came to buy VNDA on 31. may 09 (over 1M shares bought) on 30.june 09 and so on ... looks like taht institutions are buying at the end of month.

Now VNDA has a 76% of institution ownership .... SOMX is at 31%. And the nuber of O/S is similar VNDA 27.6M = Mrk.Cap. 324.58M vs SOMX about 24M = Mrk.Cap. 195.03M

Good luck to all

Loonley Tunes


Before you buy something do a good DD and make your own conclusions. My post express only my oppinion.