logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Ariad Pharmaceuticals (ARIA) Plummets on Signs it's Overbought

By  +Follow January 27, 2014 8:25AM
Share:
Tickers Mentioned:

The buyout rumor giveth, the buyout rumor taketh away.

Shares in Ariad Pharmaceuticals (ARIA) dropped again on Monday, giving up much of the 11 percent gain from Friday. Ariad actually gapped up almost five percent to start the day before starting to plunge about 15 minutes after the markets opened, ultimately shifting to a loss of about 9 percent by early afternoon.

Rumored Buyout May Not Materialize

Potentially driving the loss was an article by TheStreet’s Adam Feuerstein that cited an anonymous institutional investor who was shorting the stock as saying that Friday’s buyout rumors were unfounded. "A takeover of Ariad by any Big Pharma would be career suicide for the business development guy proposing such a deal," this investor told Feuerstein. The investor also cited the potential for competition from Novartis’ (NVS) myeloid leukemia treatment that fills a similar role to Ariad’s Iclusig.

Technical Signs Indicate ARIA Overbought

However, the more-likely source of the plunge can be found in technical factors that would seem to indicate the stock was overbought. Since its dramatic October plunge after the FDA pulled Iclusig on blood clotting concerns, and several months of back-and-forth swings on very heavy volume, Ariad has been staging a strong rally that has placed it among the best performers in its industry of the last two months.

Ariad’s heavy daily volume would indicate that this small-cap company has become something of a battleground stock, and clearly one most traders are watching. And, as such, the more likely explanation for today’s sell-off can be seen in the stock’s relative strength index (RSI) crossing 70 this morning, a technical sign that traditionally indicates a stock is overbought.

The stock also flirted with an RSI of 70 twice in late December and earlier this month, with a sell-off following soon after on both occasions. Volume today was once again very high, clearing 70 million shares by 2:30pm. With a short float of close to 25 percent, it’s clear that Ariad remains a focal point for bullish and bearish traders alike.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for ARIA
Stock Rocket
2 Sep 14 13:06:05
$DGLY is up 940.2% in 3 weeks! Our new penny stock alerts are coming soon: http://t.co/G4xan5kQD5 $FASC $ARIA $TUCN
Stock News Guru
2 Sep 14 11:04:36
$ARIA: Ariad Pharmaceuticals, Inc. (ARIA): Healthcare-focused Sarissa Capital Inches ... http://t.co/yaDQWWKwpZ http://t.co/l1dgK6CiTY
GoldenHounds
2 Sep 14 10:55:43
RT @tabuhasna: $ARIA $S $VPOR $PSID $$$$$$ CRAAAAANK it UUUUUP....
PHARMD
2 Sep 14 10:51:08
RT @Select13D: “@theflynews: $ARIA Sarissa says ARIAD denied 'poison pill' waiver request: Full Story http://t.co/bppMMCv2a3”
Jake13
2 Sep 14 10:42:43
$GLUU Buy or Sell? Click here to find out if $GLUU is a buy hold or sell. Watching these stocks. $SYN $ARIA $U http://t.co/2iqoEGXTsE
Investors Hangout
2 Sep 14 10:26:56
danrocks: $FCX Alert $IBM $IBB $ARIA $EWG $HAL http://t.co/caZ7ei3I6w
Investors Hangout
2 Sep 14 10:26:56
danrocks: $FCX Alert $IBM $IBB $ARIA $EWG $HAL http://t.co/leYzeHDGxy
Gavin Rosenbach
2 Sep 14 10:26:28
$ARIA
PHARMD
2 Sep 14 10:21:14
$aria added at 6.17 to my existing position. Added $srpt and $cldx. Sold all $aapl here, will re-enter if opportunity comes.
WW Granny
2 Sep 14 10:13:37
$ARIA - sarissa (alex denner) wanted to buy more shares - the board said no - interesting
Business News Now
2 Sep 14 10:04:40
$ARIA: Ariad Stock's Biggest Risk Is Its Only Hope http://t.co/SmJqN56DZ7 http://t.co/OxNYsV6mfs
lookn4wins
2 Sep 14 10:00:49
$EEM Volume $EEM Most recent stock chart and technical analysis. $REGN $HAL $SA $ARIA $XLE $ARWR http://stockc http://t.co/nU7r3fDPBz
danrocks
2 Sep 14 09:54:37
$FCX Alert $IBM $IBB $ARIA $EWG $HAL http://t.co/nnzX7HDEhk
Investors Hangout
2 Sep 14 09:54:14
danrocks: $JCP Hit my list a few days ago $ARIA $PLUG $GNW http://t.co/VDYfCRrx93
Investors Hangout
2 Sep 14 09:54:13
danrocks: $JCP Hit my list a few days ago $ARIA $PLUG $GNW http://t.co/vSKjEs49q8
Select13D
2 Sep 14 09:53:08
“@theflynews: $ARIA Sarissa says ARIAD denied 'poison pill' waiver request: Full Story http://t.co/bppMMCv2a3”
Select13D
2 Sep 14 09:52:56
“@adamfeuerstein: Do I have this right? Alex Denner wanted to buy more $ARIA shares but the board said no. Why would Alex want to own more?”
dougheuring
2 Sep 14 09:44:47
RT @theflynews: $ARIA Sarissa says ARIAD denied 'poison pill' waiver request: Full Story http://t.co/FJapIGUBst
Adam Feuerstein
2 Sep 14 09:37:23
Do I have this right? Alex Denner wanted to buy more $ARIA shares but the board said no. Left unanswered, why would Alex want to own more?
The Fly
2 Sep 14 09:37:22
$ARIA Sarissa says ARIAD denied 'poison pill' waiver request: Full Story http://t.co/FJapIGUBst
Extreme Stocks
2 Sep 14 09:36:33
danrocks: $JCP Hit my list a few days ago $ARIA $PLUG $GNW http://t.co/XbG26UxKSI
iHangout
2 Sep 14 09:35:53
http://t.co/vVojvVrNNL danrocks: Cheeky's Board!: $JCP Hit my list a few days ago $ARIA $PLUG $GNW http://t.co/E5XJTz1k2Y
danrocks
2 Sep 14 09:34:48
$JCP Hit my list a few days ago $ARIA $PLUG $GNW $UGAZ $FB http://t.co/EEJ4G8k9ft
$Stocknewsalerts
2 Sep 14 09:26:35
$ARIA ALERT: New ARIAD Pharmaceuticals, Inc. SEC Filing From our Stock News Alerts App
Tora Capital
2 Sep 14 09:24:19
$ARIA - Denner (sarissa) just filed 13D - Wants to buy up to 9.9% but company is pushing back. Aira is officially "in play" I would guess.
Baffoe K8B Awotwi
2 Sep 14 09:22:42
$ARIA - Amended Statement of Beneficial Ownership (sc 13d/a) http://t.co/sgbud0r8zw
StockNews
2 Sep 14 09:22:40
$ARIA - Amended Statement of Beneficial Ownership (sc 13d/a) http://t.co/ihntSGo0Dh
Pzaa...Guy
2 Sep 14 09:22:37
$ARIA - Amended Statement of Beneficial Ownership (sc 13d/a) http://t.co/dEuMPIi7GU
VisualStock Resource
2 Sep 14 09:22:35
$ARIA - Amended Statement of Beneficial Ownership (sc 13d/a) http://t.co/YQl3KS97CL
whalewisdom
2 Sep 14 09:21:30
New SC 13D/A from SARISSA CAPITAL MANAGEMENT LP concerning $ARIA. See details at http://t.co/jLl1vXeyFP
Investors Hangout
2 Sep 14 09:20:49
Emylers: $ARIA Up to date company activities and other http://t.co/fO0T0L4Bqp
Investors Hangout
2 Sep 14 09:20:48
Emylers: $ARIA Up to date company activities and other http://t.co/EI9r8VdaXh
InsiderTradingWire
2 Sep 14 09:20:09
13D Alert for ARIAD PHARMACEUTICALS INC - $ARIA - #13D #insidertrading - http://t.co/8ZQ9RPeyhu
Emylers
2 Sep 14 09:13:41
$ARIA Up to date company activities and other important information about $ARIA http://t.co/zNOmsaJEcG
Companies in News
2 Sep 14 08:04:32
$ARIA: ARIAD Falls on Wider-than-Expected Loss, Revenues Miss http://t.co/Vj4OS1D1Kj http://t.co/6I5aXnlFZ6
T Abuhasna
2 Sep 14 08:03:09
$ARIA $S $VPOR $PSID $$$$$$ CRAAAAANK it UUUUUP....
leahanne
2 Sep 14 07:31:59
$CTIX Cellceutix Corp (CTIX) 2.0400 -0.0100 (-0.49%) $VXX $ARIA $AEM http://t.co/T2RuID6NSt
Investors Hangout
2 Sep 14 07:14:47
Jake13: $ARIA Buy or Sell Opinion Click here to find out http://t.co/Wb7d9ipJHp
Investors Hangout
2 Sep 14 07:14:46
Jake13: $ARIA Buy or Sell Opinion Click here to find out http://t.co/813Z6dIOLR
Stock Market Monitor
2 Sep 14 07:04:31
$ARIA: ARIAD Falls on Wider-than-Expected Loss, Revenues Miss http://t.co/hiLnAi4ggW http://t.co/MFhCtPAwDG
Jake13
2 Sep 14 06:51:43
$ARIA Buy or Sell Opinion Click here to find out if $ARIA is a buy hold or sell. Watching these stocks. $AMZN http://t.co/sGjxsr7bjc
lookn4wins
2 Sep 14 06:45:21
$WMB Daily Chart $WMB Most recent stock chart and technical analysis. $ARIA $HAL $TRUE $GRCU $PEIX $VLO http:/ http://t.co/VZONJCU5OM
T Abuhasna
2 Sep 14 06:33:50
$ARIA $S $VPOR $PSID let's ROCK em GREEN and more GREEN $$$$
T Abuhasna
2 Sep 14 06:28:26
$ARIA $S $VPOR $PSID let's PUMP these UP..... $$$$
GoldenHounds
2 Sep 14 06:17:13
RT @tabuhasna: $ARIA $S $VPOR $PSID let's start this week off with some GREEEEEEN.....
ymscapital
2 Sep 14 05:13:18
@adamfeuerstein So now that $exel failed do you think $aria can hit 12?
Bulls vs Bears
2 Sep 14 05:04:31
$ARIA: ARIAD Falls on Wider-than-Expected Loss, Revenues Miss http://t.co/Fq0Zoxmgdx http://t.co/nWCk1PK8jh
T Abuhasna
2 Sep 14 04:59:36
$ARIA $S $VPOR $PSID let's start this week off with some GREEEEEEN.....
Market News Desk
2 Sep 14 02:04:27
$ARIA: Ariad Stock's Biggest Risk Is Its Only Hope http://t.co/Xsf1Y3Lhwy http://t.co/0nPCxcLx0f
Stock Updates
2 Sep 14 00:04:30
$ARIA: Should You Sell Ariad Pharmaceuticals (ARIA) Before Earnings? http://t.co/rDv5fAvh4j http://t.co/Fjposvivex
				
				
By  +Follow January 27, 2014 8:25AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.