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.
|Headquarters (founded)||Seattle (1992)|
|Market Cap||$1.1 billion|
|Trailing-12-Month Revenue||$396.7 million|
|Management||CEO 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|
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.
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.
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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.
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