Diamonds and Dogs
6/27/12O'Reilly Automotive Inc. (ORLY)
The wheels are falling off of O'Reilly's car today, down 14.40% at $82.55. In a note released after the close Tuesday, the company revised its second-quarter sales growth to between 2% and 2.5%, down from its earlier forecast of 3% to 5% sales growth. This lower range would be the weakest sales growth numbers since 2007-2008. O'Reilly didn't revise its second-quarter per-share earnings outlook of $1.13 to $1.17 range, but did say that the numbers would be lower than that. O'Reilly's crash caused a 4 car pile-up in automotive sector. The companies Advanced Auto Parts, Genuine Parts, and AutoZone all were part of the accident today. O'Reilly needs a tune up to get back on the road and head toward their previous highs.
Arena Pharmaceuticals Inc. (ARNA)
Arena Pharmaceuticals had a great day today, up 29.38% at $11.45. Arena scored a major victory today, winning the FDA's approval of its weight-loss pill locrcaserin. This decision becomes the first obesity medication cleared for sale in the U.S. in 13 years. The drug, named BELVIQ, affects an area of the brain that controls appetite and metabolism. Trading was halted following the news, but since resuming, shares have jumped. The FDA has recommended that BELVIQ be classified by the U.S. Drug Enforcement Administration as a scheduled drug. The DEA will review the FDA's recommendation and determine the final scheduling designation. The company set a new 52-week high today off of the approval.
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