Cramer Looking For the Next Dendreon

Cramer said in a video this afternoon on TheStreet.com that this Dendreon (DNDN-NASDAQ) is a classic case of short sellers not covering themselves by not buying calls with the strikes above.  The street.com ran a piece about "reality check" after a five-fold run and letting it pullback.  He thinks this could ultimately settle back down in the $10 to $12 range.  Cramer said there are some short sellers that lost their year on DNDN. Cramer thinks that management is very promotional here and he thinks that its own officers selling shares on the immediate jump shows that it

Incyte Corp (INCY-NASDAQ) and Nastech Pharma (NSTK-NASDAQ) are two that Cramer thinks could make similar type of moves down the road.  Nastech was brought to Cramer he said by a short seller and it was as the short seller’s "only long."  NSTK has a $283 million market cap; at $11.10 it is still closer to the lower-part of its 52-week trading range of $9.50 to $19.98;  about 16% of its float is short.

INCY has a $636 million market cap. At $7.55 it is close to the top of 52-week highs of $7.81 ($3.67 52-week lows).  INCY’s long-dated options do not have large open interest positions, but about 10.8% of its float is short.

He’s been positive on these two names, so these are not really new. Here is a summary of what he said on them Monday evening. 

Jon C. Ogg
April 12, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.