The Five Dumbest Things on Wall Street This Week

5. Encysive's Fullback Plunge

The longest yard is still ahead of Encysive (ENCY).

The Houston-based biotech suffered another setback Monday at the hands of the Food and Drug Administration. Fans had been hoping the agency would approve Encysive's Thelin treatment for pulmonary arterial hypertension. But Encysive plunged 40% in a day for the second time this year after the FDA once again failed to sound the all-clear.

"We were quite in suspense yesterday and were very hopeful of an approval," CEO Bruce Given said on a conference call Tuesday morning. "Our reading of the letter is that we got very close."

Indeed, Encysive emphasizes its progress since the last FDA decision. "Of the substantive items raised in the March 24, 2006, approvable letter, one remains unresolved," the company said late Monday. Encysive says the FDA "acknowledged that the unresolved item is a matter of judgment" and "again offered the alternative of conducting additional clinical work."

But additional clinical work is just what Encysive has been trying to avoid, since it takes time and costs money. And while Wall Street would love to know just what the FDA's concerns are, Encysive declines to share the details.

Instead, Encysive fancies itself a bruising running back churning for the end zone -- with all the clear thinking that comes with that territory.

Though Encysive has now twice sought marketing approval and been turned back, Given insists the company is "first and goal on the 1-yard line."

Can't blame anyone for deciding to punt on this stock after that comment.

Dumb-o-Meter score: 75. Maybe the FDA was offsides the first two times?

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