has clearly become a "momentum play" vs. trading in fundamentals, Adam Feuerstein tells Aaron Task on Monday's
The Real Story podcast.
But the biotech stock "could see $40" if its Provenge prostate cancer drug gets full FDA approval, says Feuerstein, a senior writer at
. The biotech columnist was less upbeat about
, however, expressing a lack of faith in the company's own prostate cancer vaccine, GVAX.
More to the point, Feuerstein says there is a "mania" developing for cancer drug stocks in the wake of Dendreon's huge rally in the past two weeks, noting that
was soaring Monday on the hope the FDA will re-review its prostate cancer treatment, Xcytrin, which an FDA panel previously rejected.
The mania notwithstanding, Task says "all biotech ETFs" are not created equal, noting that the
were down Monday despite all the excitement over cancer drug stocks and a huge rally in
, amid rumors that
is taking the company's experimental blood-clot dissolver into a stroke trial.
Task's second guest Monday was David Peltier, editor of
Dividend Stock Advisor . The newsletter has a longstanding position in
, which jumped 5% Monday on another round of rumors of a potential private-equity buyout. Peltier says the stock is worth holding even if no buyout emerges, because of Dow Chemical's strong earnings growth and healthy dividend.
Task and Peltier also discussed news that billionaire investor Warren Buffett's
has purchased a 10.9% stake in
"It never pays to bet against Buffett," says Peltier, who also pens
Value Investor newsletter. Still, investors are betting off taking a position in
"B shares" than chasing stocks after news of a Buffett stake is revealed, he says. "That has not been a winning strategy."
Outside the biotechs and rails, Task notes many of the day's "story stocks" were winners, including
While AMD rallied despite its revenue warning. Task notes that shareholders of other stocks caught in what he calls "The Geoff Tate Zone" were not so fortunate. Shares of
American Home Mortgage Investment
were each down sharply after issuing disappointing guidance.
In the remainder of the podcast, Task provided some speculative suggestions for listeners participating in
"Beat the Street" contest, a fantasy trading game.
here to listen to the entire podcast.