Shares of Dendreon Down over 63%, Ouch!

Aug 4, 2011
J. Webster
Comments Off on Shares of Dendreon Down over 63%, Ouch!

Yeah, your prostate would start to hurt if you owned shares of Dendreon (DNDN) this morning. From the WSJ:

Dendreon said sales of its controversial prostate cancer drug Provenge are growing slower than expected because doctors aren’t comfortable with the complex task of getting reimbursed for the expensive treatment. Shares plunged 63% to $13.38 premarket.

What’s our favorite contrarian investor James Altucher doing with Dendreon’s stock? Well he’s buying of course:

For myself, I nibbled on a little bit of DNDN an hour ago. The company fell 65%. It’s a volatile stock. I’ve been playing it ever since it was $4. I know how it behaves. It acts violently both on the downside and upsid, but even at $93,000 a month, Provenge, its prostate cancer drug, is still the best thing out there and Medicare will continue to pay.

And guess what? More men are turning 65 than ever. You know what that means? More prostate cancer (I should check this out myself). So I am nibbling, and I’ll eat more if it goes even lower.

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