4-Star Stocks Poised to Pop: Maxygen

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Maxygen (NAS: MAXY) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Maxygen's business and see what CAPS investors are saying about the stock right now.

Maxygen facts

Headquarters (founded)San Mateo, Calif. (1996)
Market Cap$155.0 million
IndustryBiotechnology
Trailing-12-Month Revenue$561 thousand
ManagementCEO/CFO James Sulat (since 2009)
Chief Patent Counsel Norman Kruse (since 1998)
Return on Equity (average, past 3 years)8.9%
Cash/Debt$162 million / $0
CompetitorsEli Lilly
Roche
Human Genome Sciences

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 84% of the 156 members who have rated Maxygen believe the stock will outperform the S&P 500 going forward.  

Earlier this week, one of those bulls, TMFDeej, brought a juicy catalyst to our community's attention:

I am going to dip back into the [Maxygen] well again after coming across an interesting article by Apsara Biotechnology Research on the a potential $30 million milestone payment that could be made by Bayer sometime this year. Thirty million bucks amounts to around a buck per share on [Maxygen], so with the company currently trading at only slightly above the cash that it has on the books it looks like there's the potential for the stock to advance $0.50 to $0.75/share in the near future when the payment is officially announced. That amounts to a 9% to 13% increase in the stock price. Whether that actually beats the S&P 500 will depend upon how long it takes for the payment to occur ... if it actually does ... and what the index does between now and then.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Maxygen may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another small-cap growth play with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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