2-Star Stocks Poised to Plunge: Dendreon?

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Dendreon (NAS: DNDN) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Dendreon's business and see what CAPS investors are saying about the stock right now.

Dendreonfacts

Headquarters (founded)Seattle (1992)
Market Cap$1.1 billion
IndustryBiotechnology
Trailing-12-Month Revenue$396.7 million
ManagementCEO John Johnson (since February 2012)
CFO Gregory Schiffman (since December 2006)
Return on Capital (average, past 3 years)(24.7%)
Cash/Debt$497.5 million / $573.8 million
CompetitorsNorthwest Biotherapeutics
Progenics Pharmaceuticals
Sanofi

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 17% of the 1,623 members who have rated Dendreon believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star TSIF, succinctly summed up the bear case for our community:

I can't find any fundamentals that would suggest Dendreon share price should increase from here. Although it's Provenge is a worthy achievement, as expected it couldn't productize it and it never got the buyout it sought. One trick pony with a drug that's expensive, difficult to manufacture and difficult to get doctors to prescribe. Burn rate continues with no end in sight.

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another growth play with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

The article 2-Star Stocks Poised to Plunge: Dendreon? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Dendreon. 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 Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners