Boston, MA 10/29/2013 (wallstreetpr) – They say that a rumor has no mother but has many children. And if rumors about Dendreon Corporation (NASDAQ:DNDN) are to be believed, then it is very much possible that company may very soon be up for sale. From a high of almost $7 per share, company has lost almost 60% of its market capitalization and is available at $2.8 per share. And in the past few days, company has moved up almost 30% from its 52 week lows of $2.24.
Market at present is ripe with the news that a big player in market is slowly accumulating shares of Drendeon Corporation. The reason behind this is obvious. As per current situations and changing business environments, company may not have a very bright future. So whosoever is accumulating the shares is solely doing it for one reason. Making a quick buck if the company is about to be sold. And that is what is driving company’s share prices up and away.
As far as respectable names are concerned, someone as reputed as Credit Suisse is also of the view that it would be wiser for the promoters to sell this company off rather than trying to run it. As per Credit Suisse’s statement, the rumor about company’s sales is both ‘plausible’ and ‘sensible’. If the company is indeed sold off, it would help eliminate the risk of company’s share going worthless whenever there is a debt restructuring program taking place. And this is not the first time, something like this is being said about Drendeon. Sometime back in August this year, Wedbush had claimed that all that is left for the company is ‘painful restructuring’ and a wipeout of value for equity investors. The company’s management also doesn’t feel pretty good about company’s future. They have actually decided against providing any real guidance for six months ending December 2013. Hence as an investors, its best to exit the counter and book your loses rather than waiting for complete loss of capital.
