Monthly Archives: May 2007

Security Scan

24
May 07
Security is not a headline issue these days, but large amounts of money are still getting spent on everything from defending computers against viruses and hack attacks to figuring out what is really in the container that just arrived from Nigeria listing “handicrafts” on the bill of lading. Why is this? People want to feel secure. Whether it is ordering the latest version of the iPod from the Apple website or flying across the country in a jet, people want to know that their credit card information isn’t being spread across the Internet and that there isn’t a chance of...

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Marconi, Mesh Networks, IPv6 and You

17
May 07
Greetings from Las Vegas, the place that is testimony to the fact that no idea is too dumb to get funded — “Hey, let’s build a town in the desert and hope people come here and put their money into boxes for us” — and, having gotten enough funding, eventually work out. Las Vegas has been through four iterations since I’ve been coming here: First as a real den of sin and iniquity run by the Mafia, then as a den of sin and iniquity run by professional hotel people, then as a destination family resort, and now as a...

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Dendreon March Quarter Results

11
May 07
During the regular trading session on Thursday, Dendreon (DNDN) fell 79 cents to $5.54 on a downgrade by Banc of America, extending the drop that began Wednesday after the FDA issued the “approvable” letter requesting more data about the efficacy of Provenge. Then, after the close, the company held its quarterly call, and in the aftermarket the stock dropped another 56 cents to $4.98. This morning it opened around $5.20. This is nuts, because there was some very good news on the conference call. One had to piece together a few things that management said with the answers to a...

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FDA Panel Recommendations on Amgen’s Aranesp

11
May 07
Amgen (AMGN) fell $5.77, or 9.1%, yesterday due to a decision by an FDA advisory panel on what to do about safety questions surrounding Aranesp. The stock slid before the decision, which was announced a half-hour before the close of trading, and then dropped sharply into the final bell. It bounced back 47 cents in aftermarket trading, but this morning it was downgraded by JP Morgan and HBSC Securities to neutral, and by Citigroup and Lazard Capital to sell. That took AMGN stock down another $1.75 as I am writing this, which probably marks the bottom. Aranesp is the second-generation...

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Enjoy the Ride & Prepare for the Next Leg Up

10
May 07
The Fed didn’t say anything new on Wednesday, when they kept the short-term interest rate at 5.25%. And the sigh-of-relief rally pushed the S&P 500 over my 1510 “energy level.” But that the market was quite overbought and due for a correction at least back to test the 1495 breakout level, which happened all at once today — and it looks like the test failed. While it is possible that the market will bounce back and hold 1495 tomorrow, which would indicate a very strong underlying trend, I still think the S&P is headed back to a test of 1440....

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Dendreon Issued Approvable Letter

09
May 07
FDA tells terminal prostrate cancer patients: “Drop dead!” And it also tells the FDA Commissioner: “Who do you think runs things around here — you?” In spite of the Commissioner’s best efforts, the FDA issued an “approvable” letter to Dendreon (DNDN) for Provenge, saying that they need to see more clinical data on efficacy before they will consider approval. What this means is that if Dendreon can supply interim efficacy or survival data from the currently active Phase III trial, DNDN could have that data by mid-2008 and then Provenge would be approved in 2009. However, if the FDA wants...

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An Ocean Power Update

02
May 07
Ocean Power Technologies (OPTT – note the new U.S. symbol; still OPT on the London AIM market) reverse split their stock 1-for-10 on April 23 and did an initial public offering (IPO) in the U.S. that closed on April 25. In London, stocks typically trade or go public around $1, while in the U.S. the “serious money” price is $10, and low prices like London’s often put investors off. Reverse splits are normally bad news for stockholders, because they are done by financially weak companies. Investors, who have held the low-price stock, see the higher numbers and often sell, not...

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