I think there is a good opportunity here, especially when the sentiment for the company is extremely pessimistic. Any improvement in revenues will likely beat the very low earning expectation, which will trigger another run-up of the stock price. I think this is a good speculative opportunity for a positive turnaround for Dendreon.
This was what I wrote less than one month ago on Dec 17 about Dendreon (DNDN). Today it jumped 50% up! Why? Because DNDN posted a much better sales result and also indicated that the reimbursement issue is being effectively addressed. I hope you have bought some DNDN shares. Unfortunately I missed the boat. I was thinking to get in at some time but didn't expect the situation would change so soon. If you are one of the lucky guys, I'd suggest that you take some of your chips off the table by selling some of your positions. While the positive surprise over the very depressed expectation did push the stock much higher, much of the jump was likely due to so-called "short-squeeze". Those guys who came in late and blindly followed others to short the stock got a hard hit. So they had to run by buying shares to cover their short positions, causing a short-squeeze. This kind of jump may be temporary and could come back to some extent. However, in the long run, I still think DNDN will have more room to run up. I hope to spot the right timing to get in later, especially if it indeed comes down a bit.
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