RunawayTrader

This Stock Could Buy You Your Own ‘Round-the-World Runaway

It looks like a sure thing. Nearly every Internet report I’m reading about Dendreon (DNDN) suggests that the FDA will soon announce approval of its prostate cancer drug, Provenge, (here’s a sample) and the word on the street is that its share price will bounce $10 or more if this dream trade comes true.

But will it? Well, that’s what being a trader is all about, isn’t it?

I have a small position on this stock and will likely double it before announcement. Still, we’re not taking a huge number of shares in any event, and certainly not enough to get me into trouble—whichever way the stock moves.

And great fortunes can be made (or lost) on a stock like this.

In fact, just a year ago, I wrote about DNDN (actually, I’ve scribbled about it several times when it was awaiting another approval). I mentioned in that blog one particular trader who was holding 42,000 shares of this dicey bet (worth about $168,000 at the time). She said she had done her homework on this stock and was entirely confident in her gamble. Let’s say she’s got more guts than I have.

Of course, we now know that she won the bet big-time. The value of her shares soared to a million dollars overnight, and if she still is holding, she’s got about $1.68 million. That’s enough to propel this young lady, and about 100 of her friends on trips around the globe.

You should be so lucky.

Anyway, I think it’s worth a small gamble and I’m in. But, like I say, you could easily take a flier on this stock with a thousand shares and runaway wherever you like when the news comes out. I take no such gambles anymore since I lost 30-grand on another “can’t-lose” long shot a few years ago.

If you’re ready to jump in, I don’t think you’ll find a dip to make you feel wiser so I wouldn’t bother looking for one. I think it will rise steadily until D-Day, and that’s “sometime” before May 1.

As you can see from this five-day chart, DNDN is still moving up, $3 in the last trading week—almost 9%.

But who knows? Maybe the upside has already been baked into the share price and, omigod, it could be disapproved by the FDA.

In any event, if you’re betting on this stock. Let me know.Who knows? Maybe we’ll meet in some far-flung Margaritaville trading away, and wasting away our decadent lives.

–Charlie, the RT