Buzz Stocks: Dendreon Corporation, Gogo Inc, and BlackBerry Ltd

Today's stocks to watch in the news include DNDN, GOGO, and BBRY

by Andrea Kramer

Published on Nov 10, 2014 at 9:13 AM
Updated on Apr 20, 2015 at 5:32 PM

U.S. stocks are taking a breather after last week's journey to record highs. Among the equities poised to make early moves, however, are biotech company Dendreon Corporation (NASDAQ:DNDN), in-flight wireless provider Gogo Inc (NASDAQ:GOGO), and smartphone maker BlackBerry Ltd (NASDAQ:BBRY).

  • DNDN is poised to plunge 69.2% -- deeper into penny-stock territory -- after the firm filed for Chapter 11 bankruptcy protection. Dendreon Corporation said it's reached deals with some bond holders regarding a financial restructuring -- which could include a sale of the company or its assets -- and has enough liquidity to run all of its operations during the restructuring phase. It's no surprise to find DNDN has struggled on the charts, landing at $0.94 on Friday, and touching an all-time low of $0.80 in intraday action. Furthermore, the pessimism among analysts is par for the course, with not one of the 11 brokerage firms following DNDN offering up a "buy" or better opinion.

  • GOGO is bracing for a 7.8% drop out of the gate, after the company confessed to a wider-than-expected third-quarter loss. The options crowd is likely pleased with the earnings miss, as speculators were ramping up their bearish bets ahead of earnings. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.71 stands higher than 80% of all other readings from the past year, implying that short-term options players are more put-heavy than usual right now. Meanwhile, short interest accounts for nearly 31% of Gogo Inc's total available float, representing more than eight sessions' worth of pent-up buying demand, at the equity's average pace of trading. Technically speaking, GOGO has already shed nearly one-third of its value in 2014, settling at $16.64 on Friday.

  • Finally, BBRY is headed 1.3% higher, thanks to some upbeat comments from CEO John Chen. In recent interviews, Chen -- who took the CEO spot a year ago -- said BlackBerry Ltd is on the "cusp of profitability," and vowed to do whatever he can "to never lose money ever again." On the charts, BBRY has soared 41.5% in 2014, ending at $10.53 on Friday. Off the charts, the firm will launch its BES 12 mobile management platform later this week, and will unveil its BlackBerry Classic in December. Despite the stock's technical and fundamental progress, there's plenty of room on the bullish bandwagon. Not one of the 21 analysts covering BBRY has doled out a "buy" or better endorsement, and it would take nearly eight sessions for the shorts to cover their BBRY shares, at average daily trading volumes. A round of upgrades or a short-squeeze situation could add fuel to the stock's fire.

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