Time and time again, though, he needs help. Someone has to bail him out, not literally. Not yet, anyway.
The good news for Dendreon today was that a late-session surge vaulted the PPS to $8.15, a 4.6% gain. Nice.
Then came the bad news. For those of us who caught the close but ignored after-hours trading, it was a body blow. News of the SEC's inquiry — informal, they say — regarding prostate cancer immunotherapy treatement Provenge scared off the weakest of hands. DNDN traded at $7.63 by the end of the day.
That's 16 cents lower than Monday's close.
It's the latest in the long, unpredictable history of Dendreon. Shareholders are, once again, feeling powerless to help. Only the most patient and optimistic are still in the stock.
Along with the SEC's inquiry, Dendreon announced that it received a letter from shareholders. The letter, addressed to the board of directors, requested immediate investigation and action against exeuctives who may have acted improperly after the FDA's advisory counsel approved Provenge in late March.
Whatever the case is with the SEC — there's no clear indication that it will be as "informal" as suggested — Dendreon may have more than a little scuffle ahead with angry shareholders who have filed lawsuits. If Dendreon execs have, indeed, gained financially by witholding vital information from shareholders, ugly won't begin to describe the train wreck.
Then again, those of us who are long Dendreon already expect the worst, and in fact, all of the worst-case possibilities are probably built into the stock already.
It's just that ... shareholders just want to breathe some air here, and Dendreon management shows no signs of providing an oxygen tank. Par for the course.
How bad is perception plus reality for shareholders? If Gold were fired tomorrow, the PPS would probably spike. Yet, even a dysfunctional family has better prospects if Daddy can just straighten out rather than be removed from the home.
Two days into the week, two days of major news. What more could happen tomorrow?
Disclaimer: Pupule Paul is still long DNDN.
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