zhybrids

The Week Ahead: Damage Control

Dendreon, (DNDN) The negative article today is nothing more, then someone trying to either cover a short position before a big run up in the stock price, hold down the stock for others to buy, or someone trying to cause confusion and doubt in the company, for a self motivated reward.

I believe there are several players out their, trying to put a negative spin on the facts and trying to cast doubt in every retail investors mind. Whatever the case may be, I'd take the gamble, and place a bet on the table, as all odds point in favor including the options for May 2009 for LONGS.

Its very clear the calls are currently outpacing puts 4:1 and as long as they show 22%+ on effectiveness from the control group vs placebo, this looks like a home run, for a major move above $25.00/ share.

2 Years ago DNDN's Share price skyrocketed to around $25 on a positive vote from the FDA's Advisory Panel, as the FDA usually goes along with the vote of its advisory panel. An unexpected rejection of the favorable vote from its panel, made DNDN's share price drop from $24+ a share to below $5.00.

Had the company gone on to get a favorable vote and approval from the FDA for its prostate cancer drug PROVENGE, the stock would have rocketed from the $24+ price tag it had going into the FDA meeting. Which leads me to believe the stock has the potential to trade north of $35.00 + as, that would place a 40% increase from the price at the time the FDA Panel had its positive vote.

I do hold a small long position, and feel 90% confident, this time provenge will be approved and feel the corruption in the FDA will not beable to overcome an approval, as it is now clear, there were some conflicts of interest by some board members of the FDA.

It was clear the negative vote, was partially the cause of a couple individuals who were tied to COMPETITORS of Dendreon.

A CONFLICT OF INTEREST, that became well known after the rejection for Provenge.

This time around, they will have to make the case, for not approving, and it will not be easy at all, now that all the facts are on the table about all of those involved with the process.

LONG DENDREON (DNDN)

Everything I state is my opinion, and should not be used for making an investment decision. Research before investing. Understand the risks involved, when investing in the bio-tech industry.