Amarin Corp Plc (AMRN)

[Solantey]

http://seekingalpha.com/article/1146231-stock-watch-thursday-31-january-2013?source=yahoo

Amarin's Rebound Potential Taking Shape With Dip Below Eight

Shares of Amarin Corporation (AMRN) dipped below the eight dollar mark on Wednesday, which means relatively little in the grand scheme of things, but could be a psychological level for the more squeamish investors who may have had stop loss orders set at that point. Investors have been nervous enough as shares slipped following Vascepa's approval last year,and it also didn't help that some popular financial media outlets railed the company during that time, too, when a buyout didn't take shape and the company decided to go-it-alone for the Vascepa launchy.

With eyes towards the future with due consideration to the potential of Vascepa, the current AMRN levels could turn into a nice rebound buy over the coming quarters, especially if the drop below eight incites additional selling. Amarin's current market cap gives little credence to the fact that many still consider Vascepa a potential billion-dollar blockbuster on an annual basis. It may take some time for the product to catch up to its potential on that scale, granted, but strong first year sales that approach even half that amount could spark an influx of new conviction and quickly have shares approaching previous highs.

Over the shorter term, and as mentioned previously, Vascepa's New Chemical Entity (NCE) status is key. A positive approval there will likely send shares over ten in a heartbeat, as it will confirm the product's extended protection on the open market, and could be the final piece to any buyout puzzle that may be in the works.

With the above-mentioned items in mind, AMRN's continued dip is setting up as an attractive buy, in my opinion, for those banking on potential. As I've mentioned before, this story reminds me of the trading action experienced by Human Genome Sciences before that company was swooped up by GlaxoSmithKline (GSK) when it was all said and done. As has been the case for some time now, one of the hotter stories to watch, especially as the stock drops on no negative news release.