Dendreon – A Scary Ride
April 12th, 2007 by Stephen RomanThe chart doesn’t do justice to how volatile this stock is.
Forbes discusses what is making this stock move:
On Monday, the stock spiked 30.6%, to $23.58, a $5.53 gain, apparently reflecting accumulation or investors who had sold the stock short throwing in the towel. On Tuesday, however, the stock skidded $3.94 in early trading, but then recovered all of that loss and a little bit more to trade up 7 cents, or 0.3%, at $23.65
…
Regardless of the May 15 outcome, analysts said investors should brace themselves for a roller coaster ride in the short term. Dendreon’s dramatic upswing over the last two weeks was caused by improved fundamentals and a huge short position squeeze— last month, 26 million shares were short out of 81 million outstanding.“The long and short sellers are highly polarized groups, which is a recipe for volatility,” Latta said. “In addition, the stock is attracting event-driven investors.”
Posted: April 12th, 2007 under Americas, Equities, General.
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