What's up DNDN

Hi Guys

I was not available in the 3 days for the update
Please continue to post in my absence
Shall update later on DNDN technical

DNDN is Wall Street darling for Longs and Shorts

Hi guys,

DNDN is the stock that one can make good money and also lose big if we do not have right trading strategy. “Plan your trade and trade as planned”, minimize your loses and ride realistic profit. If we exercise what we have learned, one day we will become a successful trader.

As expected, the sell off resumed today after 2 days bear rally. Is it safe to go long today? I’m not sure; we have to wait till the end of the day. More often than not, the sell off will resume the next trading day after the first reversal day on the down side.

I shall continue with my views on DNDN after market close.

DNDN UPDATE & ONT

Lets recap the bruising of DNDN share price plummeted from 25.25 backed to 4.95 after the released of FDA reviews of Provenge.
Insiders could have received the reply from FDA 1 week in advance before the 2nd rally that rode the share price up to 21.80. One would be able to identify there was a huge block of shares were off loaded, could be by insiders, on May 4 Friday. The sell off resumed on Tuesday and share price close at 17.74. FDA reviews were officially released early on Wednesday morning that lead to the sell off before the market open. It was pure manipulation by the insiders that caught traders and investors off guard seeing the shares price being hammered by hedge funds.

How to recover loses?

We have to go back to basic, "Plan your trade and trade as planned". I will not hesitate to cut loss on the first day of the sell off in anticipating further loses that could affect my emotion mentally. We would not be able to focus our next trading plan as the wound could harm us emotionally. There are lots of uncertainty clouded over DNDN development within the next quarters, although there could be a plan made by the management to present required data by FDA.

Meanwhile, DNDN share price rebounded after hitting 4.95 low and closed at 6.11. The rally could last another 2 or 3 days only as there could be traders and investors who would sell their holding at strength. Short covering by hedge funds would send the share price up to 6.47 (Fib 1.62) and 7.65 (Fib 6.82) on Monday and Tuesday. The sell off will resume after the short covering ended.
See attached DNDN chart.

ONT

kenttkw

Remember, Buy the rumor, Sell the news
Resistance at 3.04, see attached chart

Guys

Do not repeat the same mistake, lock your gains when necessary.
Don't let your profit turn into loses

Decision is yours

JMHO

DNDN Update

IDMI failure pulled down DNDN as well yesterday.
DNDN must stay above EMA 9, otherwise, it will re-visit previous low of $15

Adam

Hold tight your seat belts, the price can swing both ways as May 15 is near

Morsid, kenttkw

Did you buy yesterday?
Otherwise stay on the side line

DNDN Outlook for next week

Let’s recap on Fundamentals and Technical of DNDN

Fundamentals

DNDN upside from here

As evidenced by the prostate cancer patient advocacy groups at the March 29 Cellular, Tissue, & Gene Therapy Advisory Committee as well as by physicians interviewed on every media outlet in the recent days, the demand for Provenge seems to be very high right off the bat, so assuming a 65% penetration rate 3 years after approval could be a fair assumption here.

Peak revenues (US market): 65% x 50,000 * $45,000 = $1.462 billion

Discount the peak revenue by 12.5% per year for 3 years and one arrives at $1.0 billion.


Biotechs with promising pipelines typically trade at 7 to 20 price/sales, so by taking the low end of the above range we can conservatively assume that after Provenge's approval, the price per share of Dendreon will eventually reflect a market cap of at least $7 billion.


DNDN has 82 million shares outstanding, ~$100 million in cash as of 3/31, and can sell up to $200 million worth of its common stock on its current shelf. Assuming another dilution round (possibly as part of a RoW partnership deal), another 10-15 million shares could then be added to the float for a total of around 100 million shares.

Hence, a price per share of $70 within several months post approval is not out of the question.

Based on its current price per share of around $19
, one could easily argue that DNDN's share price is much undervalued, considering that Provenge is highly likely to be approved by May 15. The FDA usually follows the recommendation of its Advisory Committees, and especially so when the indication is a terminal one and the advisory panel has recommended that the therapy is both safe and substantially effective. Thursday’s CTGTAC voted 17 to 0 that Provenge was safe and 13 to 4 that it showed substantial evidence of efficacy.

My views

On top of the above, there is about “41% of short interest” that could double or triple DNDN share price from here.

Technical Analysis

DNDN share price keep on rising from May 1 to May 4, four days rally in anticipating May 15 approval. It was normal for traders to lock their gains on Friday after decent increase in DNDN share price last week. There could be profit taking in early AM Monday and the share price will gradually rise in the afternoon trade.

Consolidation in uptrend stock is the opportunity for traders and investors to buy on weakness upon market open on Monday. The rally will continue until next Friday. This is the type of trade that promise one to make a huge gains in one stock, build up capital and confidence, and also the beginning of the new era as a successful trader.

See latest chart attached
.

Pick of the week DNDN

Morsid,

I have nothing to comment about DNDN, just refer to previous posts and take a closer look at the chart

Tonight will be bargain hunting, buy on pull back. We will never see below $20 next week.

DNDN, CVTX & ONT

DNDN

Today will the 3rd day rally.
Will buying momentum continue today?
Looking at the chart, DNDN will re-visit previous high of 25.25.
Let’s see once the markets open.

The sell off for CVTX & and ONT ended yesterday.
It’s time for bargain hunting of the above stocks.

Morsid, you choose to lock your gain from 50% of your shares. The remainder, wait until tomorrow or Monday.

I shall continue to accumulate on pull back or asses the situation.

DNDN -Countdown FDA May 15

SEEKING ALPHA STILL THE BEST 70 TARGET WITHIN MONTHS POST APPROVAL GREAT READ

SeekingAlpha
Dendreon Corporation: The Next Biotech Winner
Wednesday April 4, 1:51 pm ET


Hillel Shakked submits: Many have noticed Friday's remarkable price movement in Dendreon Corporation (NasdaqGM: DNDN) and are wondering what the upside from here is. In the report below, I will run a back-of-an-envelope analysis for DNDN's current evaluation and will discuss its longer term potential.
ADVERTISEMENT

Let me start with a basic valuation model:

Leading therapeutic vaccine candidate, Provenge, is currently being evaluated by the FDA for AIPC (androgen-independent prostate cancer), the terminal stage of the disease also known as hormone-independent prostate cancer [HRPC]. Patients diagnosed with AIPC typically have a 16 to 18 month life expectancy.
Market size: ~150,000 current prevalence, with 50,000 newly diagnosed patients every year (US only)
Treatment cost: est. $15,000-$20,000 per infusion - 3 infusions are needed for the treatment, administered two weeks apart; cost not specified yet

Competition: Taxotere, a very strong chemotherapy drug, is the only drug approved by the FDA for AIPC that has a proven survival benefit. Over 50% of asymptomatic (without bone pain) AIPC patients prefer NOT to use Taxotere due to its relatively severe side effects. Note that in its pivotal clinical trial, Taxotere showed a median survival [MS] benefit of 3.2 months in the asymptomatic subgroup (in comparison to Provenge's 4.5 month MS benefit).

Market potential – I'll be conservative to assume 65% penetration rate and a cost of $45,000 per patient (in line with the modern cancer biologics - Avastin, Herceptin, Erbitux etc). Which doctor will not recommend that his patient try a drug that has a markedly less severe side effect profile than Taxotere and that has shown a greater MS benefit in both of its Phase 3 trials? As evidenced by the prostate cancer patient advocacy groups at the March 29 Cellular, Tissue, & Gene Therapy Advisory Committee as well as by physicians interviewed on every media outlet in the recent days, the demand for Provenge seems to be very high right off the bat, so assuming a 65% penetration rate 3 years after approval could be a fair assumption here.

Peak revenues (US market): 65% x 50,000 * $45,000 = $1.462 billion

Discount the peak revenue by 12.5% per year for 3 years and one arrives at $1.0 billion.

Biotechs with promising pipelines typically trade at 7 to 20 price/sales, so by taking the low end of the above range we can conservatively assume that after Provenge's approval, the price per share of Dendreon will eventually reflect a market cap of at least $7 billion.


DNDN has 82 million shares outstanding, ~$100 million in cash as of 3/31, and can sell up to $200 million worth of its common stock on its current shelf. Assuming another dilution round (possibly as part of a RoW partnership deal), another 10-15 million shares could then be added to the float for a total of around 100 million shares.

Hence, a price per share of $70 within several months post approval is not out of the question.

Based on its current price per share of around $13, one could easily argue that DNDN's share price is very undervalued, considering that Provenge is highly likely to be approved by May 15. The FDA usually follows the recommendation of its Advisory Committees, and especially so when the indication is a terminal one and the advisory panel has recommended that the therapy is both safe and substantially effective. Thursday’s CTGTAC voted 17 to 0 that Provenge was safe and 13 to 4 that it showed substantial evidence of efficacy.

The efficacy vote came with a great deal of excitement because the efficacy question, as originally written in the FDA's briefing documents, was unusually stringent and did not follow FDA guidelines. The question originally worded by the FDA was “Did the treatment establish efficacy?” When the term “establish” was interpreted and vocalized by the first three advisory panel members to mean “100% conclusiveness,” the committee chairman, Dr. James Mule, halted the voting and asked the FDA attendees if the question was worded properly, noting that “substantial efficacy” is the language in the FDA’s own guidelines for drug approvals. The two high-ranking FDA officials attending the meeting agreed with Dr. Mule and corrected the overly stringent terminology. The revised question was re-asked, “Does the product demonstrate substantial evidence of efficacy?” The first three panel members immediately reversed their votes, and the final panel vote on efficacy was 13 Yes and 4 No.

More to Follow

The price per share calculation above was based only on revenues in the US market. Provenge sales from the rest of the world [ROW] could eventually match US revenues. DNDN has stated that it would like to partner Provenge with a larger biopharma company. Signing a lucrative ROW partnership agreement with a healthy upfront payment and sales milestones, in addition to 20-25% royalties is certainly conceivable post-US approval. Hence, another 25% pop in the pps can be expected when a ROW is announced.

ADPC (androgen-dependent prostate cancer) indication: The market size of this earlier stage of advanced prostate cancer comprising patients who are still responding to androgen blockers is estimated at two to three times larger than the AIPC market. In mid-2005, Dendreon completed enrollment in a Phase 3 clinical trial that randomized patients to the treatment arm of Provenge plus Lupron or to the control arm of Lupron plus sham Provenge (saline solution). Final data is still years away, but initial results from the earliest enrolled patients have so far shown that Provenge appears to be delaying the rise in PSA from the 0.0 level to the 3.0 level.

Neuvenge, etc: Dendreon was forced to suspend its follow-on immunotherapy drug, Neuvenge, for breast and ovarian cancer patients who are HER2/Neu positive, in order to conserve its cash. The relentless short selling of DNDN shares blocked the ability of the company to raise enough money without significant dilution. The Neuvenge Phase 2 results showed excellent promise, so it is hoped that this program can be restarted shortly after approval, three years after its suspension.

21st Century Medicine

By approving Provenge (PDUFA date is May 15), the FDA jumpstarts cancer therapy into the 21st Century—this is a personalized treatment called autologous immunotherapy—using the patient’s own cells and it is based on Dendreon's patented Antigen Delivery Cassette platform. It is important to note that Dendreon holds numerous patents, as well as exclusive and nonexclusive licenses to use over 20 other antigens for future therapeutic vaccine development. In other words, once DNDN scientists find the most appropriate antigen target expressed in any type of cancer, the same procedure used in administering Provenge immunotherapy can be applied.

What are the odds of approval? Based on the Advisory Committee [AC] vote of 13 to 4, the odds seem to be quite high. Moreover, surveying the outcomes of the recent FDA Advisory Committees, the FDA has approved 37 of the last 38 treatments following a positive recommendation from an Advisory Committee. The current FDA commissioner is a urological oncologist and prostate cancer survivor whose father passed away from AIPC, who has publicly stated more than once that FDA will serve as a “bridge” to new cancer therapy and not an obstacle, and has gone on record as saying that cancer can be conquered by 2015. If he were to reject this innovative therapy after such a strong positive AC vote and after such passionate and emotional appeals from prostate cancer patients and advocacy groups, his words will ring hollow. What cancer patients are asking is that they have a choice; that they make the final decision about their therapy and that a 1 in 40 chance that the statistically significant survival benefit seen in Provenge’s pivotal 9901 trial was a false positive (as stated in the FDA biostatistical briefing document) does not bother them, especially when the treatment has such a mild side effect profile.

It may very well be that the CBER division of the FDA (biologics) has decided to move forward into the 21st Century, leaving the CDER division (drugs) in the dust and rendering its 1960s-1970s mentality of preferring 800 to 1,000-patient cancer trials featuring toxic chemo regimens obsolete. CDER's "vision" of extending survival by two or three more months but making the participants feel miserable (or killing or hospitalizing them) is 20th Century thought, not 21st.

Dendreon is weeks away from pioneering the "21st century medicine" and based on their robust technology, they could very well turn into the next Amgen (NasdaqGS: AMGN) and Genentech (NYSE: DNA - News).

Disclosure: Author has a long position in Dendreon

Buy on pull back, below $16.00 or below $16.50
Support $15.88

The stock that is good for a day trader (CVTX)

Take a look at Nasdaq chart, consolidation will pull along index stocks, AAPL, MSFT, INTC, NVDA, BRCM and others.

CVTX

The stock is good for a trader. We have to observe low price of the day to go in, usually in early am trade. We can go in and out everyday or twice a week. Look at the chart for the resistance and support.

DNDN

Closely watched by most smart money, fund managers, professional & small traders. The review for approval from FDA is on May 15. Volume traded is decreasing towards $15.00 so selling pressures. It is getting interesting now as the shares have accumulated by the smart money before the next rally is about to begin, probably tonight, tomorrow or end of the week. Chart attached

ONSM

Sold at 2.49, and will re-renter tonight in early trade. We have to identify trading pattern of individual stock the selling and buying time of the day. Reason for the pull back could be the news released yesterday. The sale of On-stream Media restricted common stock at $2.25 per share. Chart attached

AVNR

The opening price is usually higher than the closing price. The only way to make money from this trade is to buy before market close.