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When a $7 a share biotechnology company like Dendreon Corp. (NASDAQ: DNDN) rockets 200% to over $20 a share in one day, like it did yesterday after reporting successful Phase 3 trials of its prostate cancer drug, investors get interested in any biotech stock under $10.

But before investing in these speculative companies, you should have a clear understanding of how this niche operates. Marketing plays an important role in order for the companies to raise capital, therefore if you are interested in betting on a company's future, you should consider the risk factors and odds of success.

Continue reading Should you invest in low priced biotech stocks like Dendreon?

Should you invest in low priced biotech stocks like Dendreon? originally appeared on BloggingStocks on Wed, 15 Apr 2009 12:45:00 EST. Please see our terms for use of feeds.

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