Stocks Shaking the Investment World
Jan 12th 2012 3:28PM
Updated Jan 12th 2012 4:14PM
Some stocks are one-hit wonders, making a big splash when they first appear, then quickly fizzling into obscurity or oblivion. But for other stocks, that initial big move is only a preview for even bigger and better gains to come.
Today, we've listed three stocks that made some of the biggest upward moves over the past month, despite the incredible volatility in the market, which we'll pair with the ratings issued by our Motley Fool CAPS community. The higher each stock's rating, the greater CAPS members' faith in that company's ability to keep on beating the market.
1 Month % Change
CAPS Rating (out of 5)
|Dendreon (NAS: DNDN)||
|Delcath Systems (NAS: DCTH)||
Source: FinViz.com; 1 Month % change from Dec. 9 to Jan. 11.
While you were out, the markets rebounded, but they may turn tail again if Europe's fragile financial system falls apart. So before we get shaken out again, let's see why the CAPS community thinks some of these companies might continue to outperform the market.
A mighty temblor
Better-than-expected sales of prostate cancer drug Provenge helped lift Dendreon out of the doldrums and start the new year off right. Revenues came in at $82 million, up 25% sequentially, though growth rates were off from the 30% seen in the previous period.
Dendreon had to change its tune about the drug's growth prospects after initially promising $350 million to $400 million in sales. Instead, they came in at $228 million and management was warning that second-half growth of Provenge would only be "modest." That's why, when it reported the numbers it did, the stock took off.
Modesty is not Dendreon's only problem, as prostate cancer drugs from competitors like Medivation (NAS: MDVN) are working their way through clinical trials, so Provenge's window to grab market share could slam shut sooner than expected. Medivation's MDV3100 announced strong late-stage trial results in early November and has a meeting with the FDA this year. The oral drug could be a blockbuster in the making, especially if results from its PREVAIL trial with early-stage patients read out well.
Almost 84% of the CAPS members rating Dendreon believe it will still be able to carve out a niche for itself, but tell us on the Dendreon CAPS page or in the comments section below if you think it will ever gain altitude again, then add the biotech to your watchlist to see if it crashes and burns.
Medical device maker Delcath Systems initially got a boost from appointing a distinguished doctor to its medical advisory board, then followed it up with an announcement that it had signed an agreement with an equally prestigious European cancer research center.
Delcath is trying to get its minimally invasive chemosaturation technology approved. The Chemosat delivery system delivers significantly higher doses of drugs to the organ, in this case the liver, without risking exposure to the whole body. Others are focusing on liver cancer, too, but Bristol-Myers Squibb (NYS: BMY) recently reported its experimental liver cancer drug brivanib didn't meet the goal of improving survival outcomes compared with a placebo.
CAPS member siri22 believes that despite the setbacks Delcath has received at the hands of the FDA, it will be a big winner for his portfolio in the future: "Dollar-cost average in, buying as much as I can, medical device for specific chemo infusion, 10 bagger check back in 2 years."
So add Delcath to your watchlist and tell us on the Delcath Systems CAPS page if you think Europe will provide it the incubation period it needs to succeed.
Shake, rattle, and roll
These two stocks shook the market this past month, but the Fool has found one company that's digging up massive profits and is likely to continue to do so if the markets become rattled. Roll on over to get your free copy, but hurry, because it's available only for a limited time.
At the time this article was published Fool contributor Rich Duprey holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Dendreon. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.