Why Dendreon Corporation Shares Spiked Higher

Dendreon delivers optimistic fourth-quarter guidance, but will it be enough to right this sinking ship?

Jan 13, 2014 at 1:28PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Dendreon (NASDAQ:DNDN), a biopharmaceutical developer of immunotherapies focused on treating cancer, advanced as much as 16% after announcing its preliminary fourth-quarter revenue before the opening bell.

So what: According to Dendreon's press release, the company expects to report revenue of $74.8 million for the fourth-quarter, up 10.1% from the sequential third-quarter, but still down about 12% from the year-ago period. By comparison, Wall Street had only been expecting Dendreon to report $72.8 million in revenue in Q4. Dendreon notes that it added 31 new accounts in the fourth-quarter and that it had $199 million in cash on hand at year's end.

Now what: This is clearly a step in the right direction for Dendreon which needs to pick up the pace with regard to sales of its metastatic prostate cancer drug, Provenge. The recent approval of Provenge in Europe coupled with its second round of steep job and cost-cuts over the past year and change should help reduce its losses dramatically. However, investors would much rather see Dendreon's pipeline drive forward rather than the company simply shrinking its expenses until it's breakeven on a profitability basis. It remains a company most investors will want to watch from the sidelines in spite of today's optimistic news.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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