I am in now, as well. I am still hoping for a manipulated drop but beginning to lose confidence that it will happen. What's frustrating is how difficult it is to acquire shares at this level. There is extremely little sell-side interest.

Here is Needham's summary from yesterday:

ArQule Inc. (ARQL) – Buy
ARQL: 3Q09/Early 4Q09 Review – We See a Converging Inflection Point Regarding Phase 2 ARQ197
Development, with Significant Newsflow Expected In 1H10.Reiterating BUY

Price (11/04/09) $3.28
12-Month Price Target $12.00
52-Week range $6.34-2.18
Shares Out. (MM) 44.3
Market cap (MM) $145.4
Avg. daily volume (000) 245.9

Today ArQule reviewed 3Q09 and highlighted progress expected in
YE09 and 2010. Highlights of the call included: (1) ARQ 197 Phase 2 trial
in combination with Tarceva on 2nd/3rd line NSCLC finished enrollment of
160 patients, with data expected in 1H10; (2) a Phase 2 trial to evaluate
ARQ 197 in hepatocellular carcinoma (HCC) as single agent was initiated in
October 2009, and separately, a Phase 1 safety study is being conducted to
evaluate ARQ197 in combination with sorafenib (Nexavar) on HCC; and (3)
the Phase 2 pK trial of ARQ 197 + gemcitabine in solid tumors was initiated
in 1Q09 and may have data leading to pancreatic cancer Phase 2 arm of
ARQ 197 + gemcitabine study in YE09/early 2010.
We believe that ArQule is approaching a converging inflection point for
ARQ197 as a drug of choice for combination with several anti-cancer
agents, first for specific conditions (e.g. NSCLC) but moving towards
potentially broader use of ARQ197 in combination with a given drug in
a variety of tumors (Tarceva-sensitive tumors). To inform this potential,
data from a Phase 2 NSCLC combination trial as well as combination
therapy safety trials (ARQ 197 + sorafenib and ARQ 197 + gemcitabine) are
expected in early/mid 2010. Furthermore, the single agent Phase 2 MiT trial
is expected to complete enrollment by YE09.
We believe ARQL shares are undervalued, noting the Company's low
technology value of $16MM. For long-term investors looking for
promising early stage assets that may serve large markets, we feel that
2009 may be an opportune time to build a position, leading to the
potential upside of significant 1H10 newsflow as outlined above.
Furthermore, the Company's strong cash position and costs offset by
partnership investment lower the risk from a liquidity perspective.
For 3Q09, ArQule reported a net loss of $8.1MM or ($0.18) per share. Net of
its ARS loan draw down, at the end of 3Q09 the Company had $130MM in
net cash and securities. We project a burn rate of $46MM for 2009, and
we believe ArQule may have sufficient cash for the next few years.

NEWSWORTHY EVENTS EXPECTED WITHIN THE NEXT 3-6 MONTHS
- Complete enrollment of Phase 2 ARQ 197 in MiT tumors (YE09)
and report data (1H10)
- Report data on Phase 2 PK study of ARQ 197 + gemcitabine in
solid tumors (YE09/early 2010)
- Present data on Phase 1 dose escalation trial of ARQ 621 (1Q10)
- Report initial data on Phase 2 trial of Tarceva +/- ARQ 197 in 2nd
/3rd line NSCLC (1H10)
- Report data on Phase 2 ARQ 197 in MiT tumors and plan Phase
3 program if Phase 2 endpoints met (1H10)