2-Star Stocks Poised to Plunge: Dendreon?

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.

Dendreon facts

Headquarters (founded)

Seattle (1992)

Market Cap

$682.6 million



Trailing-12-Month Revenue

$428.5 million


Chairman/CEO John Johnson
CFO Gregory Schiffman

Return on Capital (average, past 3 years)



$432.2 million / $578.8 million


Northwest Biotherapeutics
Progenics Pharmaceuticals

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

On CAPS, 17% of the 1,613 members who have rated Dendreon believe the stock will underperform the S&P 500 going forward.

This past summer, one of those Fools, NHWeston102, succinctly summed up the bear case for our community: "Dendreon appears rudderless. They are firing sales people, honking off physicians, and their [prostate cancer drug Provenge] is just too expensive. Others are breaching their moat. Not looking good."

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here 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 theTrackPoisedToCAPS 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.