Will the Shorts Keep Hating Dendreon Corporation in 2014?

Dendreon was a favorite of short-sellers in 2013. Could 2014 be the year Dendreon gets some market love?

Jan 15, 2014 at 6:30PM

After a disappointing 2012 that was defined for Dendreon (NASDAQ:DNDN) and its investors by several missed benchmarks, 2013 saw the stock reach the remarkable achievement of having 35.4% of its float sold short. Now as 2014 begins to kick into full gear, many investors are wondering if public sentiment will ever turn around for this much-maligned stock.

In this video, Fool health care analysts David Williamson and Max Macaluso sit down and take a look at the future of Dendreon. David notes that much of the overoptimism and subsequent fall of public opinion around the stock had to do with the reality that the launch of its prostate cancer vaccine Provenge was ultimately flawed. Management credits competition from Johnson & Johnson's (NYSE:JNJ) Zytiga as being stronger than anticipated and damaging sales; David also mentions that Medivation's (NASDAQ:MDVN) Xtandi is a strong second-line treatment that should soon be a competitor in the first-line treatment space as well.

While the company does have a couple other strategies to employ here, it's running out of time. David looks at the company's balance sheet and highlights the fact that at the company's current spending rate, it won't even make it through 2014 without some sort of capital raise, which will be dilutive for shareholders. David closes by discussing what would have to happen for the heavy short position on this stock to change.

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David Williamson owns shares of Johnson & Johnson. Follow David on Twitter: @MotleyDavid. Fool contributor Max Macaluso has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

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." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

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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