A downgrade that raises the price target raise and forecasts a 20% bump on approval? I call that an "upgrade!"
Citigroup downgraded shares of Dendreon from buy to hold citing valuation. The company is waiting for regulatory approval for its new prostate cancer drug and analyst Lucy Lu wrote in her report that the shares are currently "priced to perfection". With the downgrade, Citigroup raised its price target to $40 per share and noted that the price could climb to $50 per share if the drug is approved.
maybe she should check Citi's sh price .talk abou being priced to perfection !!!! Who hell ever heard of the B*tch in first place . Some no name trying make a name for herself . Actually making a call this late in the game is chicken shit, So now we hace CS-LUcy.
According to the idiot Lu, DNDN is now priced to perfection.
So with her new $40 target, it would imply that she really really really believes DNDN will get approval, since $40 is a level that is "priced to perfection". Yet then she says that there is a 60% chance for approval. WTF is that??? Does she even realize that she is contradicting herself.
And then she then added that DNDN could go to $50 upon approval. So which is it? Is $50 the new price to perfection?
Analysts like Lu should be fired as soon as possible.
Actually, from the jumbled-up call's text, its obvious to any astute industry-watcher, that, this was done under obvious pressure. An ex-analyst friend of mine speculated on this and said that: This was routinely observed in his previous life. They would come-in, 2 or 3 of them together, at his desk (any lowly analyeast in the firm) and state that, something imp. - they want to discuss. Do you want to do it here (at his desk) or would rather come in to the mgt. office? Recognizing the gravity, he would happily go in. Then they would say: "Look, things are not going that great with you for us. But, here is something you can do for us, that may help keep you on p.yr.ll ... some of our big cl..nts need help, and you need to make the -ve call. You'll have to sacrifice your name a bit here, we understand ... but, its either that or the next p.ych.k, you choose!" And, he will happily downgrade in a zippy!
Now, the whole thing may be just a speculation on his part, and may not apply at all here, but, it sure smells like it! We should not be surprized either way. Wish this wasn't the case... but, they do it routinely and the system of so called "market checks-and-balances" only exist as vaporware with the Gods, and not for the little Joes on the street. What else is new? ;-)
ps .......ah I am going to give analysis for tomorrow . The sun will probably come up in the morning 100% for sure but if it doesnt we will all freeze to death. However if it come up but it is very cloudy then we will probably not get a sunburn . If sun come out later in the day then I predict that it will come up day after for sure . If it doesnt which has a 1% or less probabilty then we are screwd . I learned this kind of analysis in a Lucy Lu class !