2-Star Stocks Poised to Plunge: Geron?

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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 Geron (NAS: GERN) has received a distressing two-star ranking.

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

Geronfacts

Headquarters (founded)Menlo Park, Calif. (1990)
Market Cap$345.2 million
IndustryBiotechnology
Trailing-12-Month Revenue$1.9 million
ManagementCEO Dr. John Scarlett (since September 2011)
CFO Graham Cooper (since January 2012)
Return on Equity (average, past 3 years)(55.1%)
Cash/Debt$118.2 million / $0
CompetitorsGlaxoSmithKline
StemCells
Xenoport

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

On CAPS, 8% of the 663 All-Stars who have rated Geron believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, TSIF, touched on the stock's seemingly unsustainable valuation:

Geron Corp has doubled from it's June lows. ... A less toxic chemo drug delivery system seems promising, but also seems difficult to correlate and time consuming to study. ... Cash burn rate and cash position seem relatively strong although many biopharms sell into strength anyway. This might have made a good speculative up-play at $1.30 as insiders did. Overall, I'm not supporting the market cap at this stage.

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The article 2-Star Stocks Poised to Plunge: Geron? originally appeared on Fool.com.

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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