The turmoil in the markets makes it too easy to justify selling any stock these days. Yet, while panic never helps investors, it's still a good idea to play devil's advocate with investments.
Consider cancer treatment developer Dendreon
Here at the Fool, we like to consider both the good and the bad sides of an investment, so I'm highlighting three of the main bearish arguments on Dendreon. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Dendreon in CAPS.
1. Waiting for profits
While Provenge could bring billions of dollars in annual sales if it gets approved, Dendreon expects to incur more losses for the next several years while it ramps up manufacturing capacity and marketing efforts. The company posted a wider loss in the third quarter, and some people prefer investing in a stock that has billions in free cash flow, like Pfizer
2. Speculative play
Shares of Dendreon have earned a two-star rating in CAPS and have already generated huge gains this year, similar to the spike in Vanda Pharmaceuticals
3. Uncertainties remain
Another high-cost drug, Eli Lilly's
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Fool contributor Dave Mock recommends three shots of brandy in the eggnog, but only if you won't be operating heavy machinery. He owns shares of Pfizer, which is also an Inside Value recommendation. Novartis is a Global Gains pick. The Fool's disclosure policy survived Black Friday but remains concerned about shopping at the mall this week.