No Magic in Anti-Obesity Pills and Profits
By: 
From: Nicole Urken
Sent: Tuesday, July 10, 2012 12:51 PM
To: James Cramer
Subject: Derby: The Mad Money Metrics... and ARNA
Important to note that ARNA has a big-time retail investor cult following. not surprising at all that it leads the voting. So when we present it as viewer-choice winner, we will make sure to present the caveats even though there is a lot of hype
From: James Cramer
Sent: Tuesday, July 10, 2012 1:41 PM
To: Nicole Urken
Subject: RE: Derby: The Mad Money Metrics... and ARNA Balance!
Good and the bad. The fears -the moves—why we said sell half and are sticking by it. I also don’t like the enthusiasm
From: James Cramer
Sent: Tuesday, July 10, 2012 8:51 PM
To: Nicole Urken
Subject: RE: Derby: The Mad Money Metrics... and ARNA
True ARNA believers all over me tonight about how VVUS is a fraud and that I am a fraud
From: Nicole Urken
Sent: Tuesday, July 10, 2012 8:58 PM
To: James Cramer
Subject: RE: Derby: The Mad Money Metrics... and ARNA
Such a cult stock. Amazing.
On "Mad Money" last week, we chose to honor (and exploit) Major League Baseball’s All-Star Game by announcing the "Mad Money" Home Run Derby, looking at the five best-performing all-star stocks of the second quarter: Arena Pharma, Pharmacyclics, Onyx Pharma, U.S. Airways and Mellanox Tech. Given the outsized performance of these big hitters, we turned to viewers to vote on which would be the best performer for the remainder of 2012. Arena Pharma, the “hot new name” with a recently approved anti-obesity drug, received an overwhelming 67 percent of votes, with the other candidates trailing well behind.
Ultimately, the enthusiasm for Arena by the retail investor community is unsurprising, particularly in a market like this one with many macro overhangs. The 'animal spirits' reach for potential pockets of profit — such as a hot specs — is certainly intriguing, particularly in such an uncertain market. Additionally, a biotech stock with an anti-obesity drug is naturally going to attract retail investors given the mass consumer appeal of such a drug.
