This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Nearest Resistance: $6
Nearest Support: N/A
Catalyst: Earnings, Restructuring Plan
Small-cap pharmaceutical firm
Dendreon(DNDN) is seeing heavy trading activity this afternoon after announcing earnings and a restructuring plan that will cut 600 jobs from its headcount -- more than a third of its employees. The move is being proffered as a means of cutting costs after second quarter earnings missed estimates.
>>5 Biotech Stocks Poised for Breakouts
So far, the only cost that's been cut has been DNDN's share price. Shares have slid more than 35% so far this year, counting the 20% that the stock has shed since yesterday's closing bell. That pushed DNDN to a new
52-week low, a phenomenon that has opposite effects from Pfizer's new highs.
Resistance is especially strong at $6. I'd recommend avoiding this stock right now.
Dendreon was also featured recently in "
4 Biotech Stocks Under $10 With Relative Strength."