Why Northwest Biotherapeutics Inc. Shares Swooned

Northwest Biotherapeutics shares take a breather following a downgrade. Is this a buying opportunity or the opening of the selling floodgates?

Mar 12, 2014 at 12:52PM

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 the recently volatile Northwest Biotherapeutics (NASDAQ:NWBO), a clinical-stage biopharmaceutical company developing immunotherapeutic options to treat cancer, dipped as much as 21% after receiving a downgrade before the opening bell.

So what: Research firm Oppenheimer dropped Northwest Biotherapeutics, known also as NW Bio, to perform from outperform, with valuation cited as the primary concern. Oppenheimer said it believes the recent run-up has fairly valued NW Bio's assets, including its DCVax immunotherapeutic pipeline.

If you recall, this week's stock rise came on the heels of two special approvals in Germany -- a hospital exemption and approval for insurance reimbursement -- which will allow DCVax-L to be given to German patients with glioma brain cancers. In return, NW Bio will be able to charge a full price for the medication and be reimbursed through sickness funds (i.e., insurance companies). DCVax-L is being tested in a phase 3 trial in the U.S. for glioblastoma multiforme, or GBM, the most lethal form of brain cancer, but the German five-year approval allows DCVax-L to be used on all glioma brain cancers in that country.

Now what: I'm certainly not surprised to see the downgrade after the monstrous run NW Bio had from receiving what amounts to a temporary approval in Germany. I continue to believe that its U.S. phase 3 study is what will matter most, since analysts will be looking toward the strictly regulated Food and Drug Administration for direction as to DCVax-L's potential, at least in treating GBM. This isn't to say that NW Bio isn't headed in the right direction with its pipeline, or that some move higher wasn't due given its two special exemptions, but the upside appeared very limited following its recent two-day move higher.

Northwest Biotherapeutics has soared this year -- but even it may struggle to keep up with this top stock when all is said and done
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool has no position in any companies mentioned in this article. Try any of our Foolish newsletter services free for 30 days. 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.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers