1-Star Stocks Poised to Plunge: Orexigen Therapeutics?

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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, biopharmaceutical company Orexigen Therapeutics (NAS: OREX) has received the dreaded one-star ranking.

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

Orexigenfacts

Headquarters (founded)La Jolla, Calif. (since 2002)
Market Cap$399.9 million
IndustryBiotechnology
Trailing-12-Month Revenue$3.4 million
ManagementCEO Michael Narachi (since 2009)
Acting CFO Joseph Hagan (since 2011)
Return on Capital (average, past 3 years)(51.4%)
Cash/Debt$138.6 million / $0
CompetitorsAbbott Labs
Arena Pharmaceuticals
(NAS: ARNA)
GlaxoSmithKline

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

On CAPS, 24% of the 262 All-Star members who have rated Orexigen believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, jed71, cautioned Fools about getting too excited over Orexigen's recent speculation-fueled surge:

Obesity drug still not approved yet. Run up based on expectations and approval received by a different company, Arena Pharma, for a similar obesity drug. It will not hold the run up, because, well, [Orexigen] never holds these run ups.

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The article 1-Star Stocks Poised to Plunge: Orexigen Therapeutics? originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Abbott. 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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