2-Star Stocks Poised to Plunge: Threshold Pharmaceuticals?

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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 Threshold Pharmaceuticals (NAS: THLD) has received a distressing two-star ranking.

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

Thresholdfacts

Headquarters (founded)San Francisco, Calif. (2001)
Market Cap$430.5 million
IndustryBiotechnology
Trailing-12-Month Revenue$314.0 thousand
ManagementChairman/CEO Dr. Harold Selick (since 2002)
Principal Financial Officer Joel Fernandes (since 2007)
Return on Assets (average, past 3 years)(37.0%)
Cash/Debt$49.7 million / $0
CompetitorsEli Lilly
Pfizer

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

On CAPS, 23% of the 101 members who have rated Threshold believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, All-Star zzlangerhans, tapped the stock as a particularly risky proposition:

Rising summer tides have bought Threshold back close to recent highs seen shortly after the company partnered TH-302 with Merck KGaA and then reported significant [progression-free survival] improvement in [pancreatic cancer] in trial 404. Those tides have left the stock vulnerable to a sharp decline if the OS data from the same trial to be reported this half don't match lofty expectations.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Threshold, with its two-star rating, may not fit the bill for your portfolio.

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Pfizer. 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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