My favorite speculative stock idea for 2014 is a development stage drug company whose lead product is Afrezza, an inhalable form of insulin for patients with diabetes, writes Nate Pile of Nate's Notes.

MannKind Corp. (MNKD) already saw the completion of two successful Phase III trials in 2013. Now, the company has filed for approval of the drug from the FDA, and a verdict is due sometime around the middle of 2014 (if not sooner).

Along with this important event, we also anticipate the company will announce a partnership for commercialization of the drug, sometime in Q1, or early Q2.

While we believe Afrezza has the potential to be a game changer in the battle against diabetes (and thus warrants an investment all on its own), what makes the story especially intriguing, from an investment standpoint, is that there is an exceptionally large, short position in the stock.

While this is not at all unusual for companies who are waiting for the FDA to rule on their fate, what makes this story unique is the fact that the company's founder and CEO, billionaire Alfred Mann, has essentially taken the other side of the trade by investing close to $1 billion of his own money in the story over the years.

Given his multi-decade track record of successfully starting, growing, and then selling innovative technology companies for a pretty penny, we are happy to be investing alongside him in this situation.

There are never any guarantees when it comes to the FDA (and thus the story is still considered “speculative”), but we believe there is the potential for a significant short squeeze to develop in the stock, if the pieces fall into place for the company in 2014.

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