FDA Delay Reaffirms Shorting of Encysive Stock

by Andrew Vaino


I've written on a couple of occassions how I thought Encysive Pharmaceuticals (ENCY) was a good short. With announcement today that the FDA will delay any ruling on Thelin until June 15th, the stock dropped 25%. I still am mistrustful of the CEO for his lack of disclosure as to what the problem with their first two submissions was.

The stock may well drop further, but at this point I would look to cover tomorrow and take the ~25% profit the short I recomended (@ $5.76 week of Nov. 6) affords. My take is the stock will wind back up toward June, when it will time to reevaluate whether to go long or short. My initial guess is still short, but this is subject to change.

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Relted BHI articles:
- No Decisive Word on Encysive Pharmaceuticals
- Encysive: Despite TBC3711 Trial Resumption, Thelin is Key Factor
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