Disclosure: Holding 5k long at 4.57. Mental stop is now 3.57. Stance on the company goes from positive to cautiously optimistic. After hours ARNA annouced they are going to do a large common stock offering. Looks to be around 4ish, and I ask, WHY? I understand the Deerfield credit facility, and it made both financial and economic sense to me, as I figured there would be no more dilution in ARNA until at least after BLOSSOM results in september. I also figured based on Lorcaserin safety profile in BLOOM, and placebo weight loss adjusted 4.9% weight loss, there was an outside chance of landing a partner before BLOSSOM. That small hope is now gone. Now it’s almost 100% certain any potential partner will want to see BLOSSOM data before talking to ARNA again. I can tell you this, based on Hydroxycut recall, I thought ARNA had an inside track in the weight loss space against VVUS and OREX on safety profile alone. All this common stock dilution does is raise questions about how good the BLOSSOM results really are. I have shorted ARNA in the past, and let me tell you this, this common stock offering is a red flag that BLOSSOM results are not up to snuff. Even though, and I quote Jack Lief on this “…they don’t expect anything different from the positive data released in the Bloom study.” After hours Adam F. from thestreet.com put out an article on ARNA, and event though it’s not positive, I agree with the man. http://www.thestreet.com/_yahoo/story/10536923/1/arena-pharma-raising-cash-again.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA When I originally bought my swing long shares in ARNA, my objective was to double down my position on weakness. That position has now changed. I am now going to hold my current shares with a stop, and will not be adding to my ARNA position. All can be forgiven if BLOSSOM data lives up to it’s BLOOM promises, but the big, monster upside from this data is certainly cut down with this heavy offering. Will continue to monitor, and disappointed in today’s news, especially after the deerfield credit facility last month. Welsh