1-Star Stocks Poised to Plunge: Sarepta 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, biotechnology company Sarepta Therapeutics (NAS: SRPT) has received the dreaded one-star ranking.

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

Sarepta facts

Headquarters (founded)Bothell, Wash. (1980)
Market Cap$857.9 million
IndustryBiotechnology
Trailing-12-Month Revenue$43.5 million
ManagementCEO Christian Garabedian
Principal Accounting Officer Michael Jacobsen
Return on Equity (average, past 3 years)(90.2%)
Cash/Debt$24.5 million / $1.8 million
CompetitorsAlnylam Pharmaceuticals
GlaxoSmithKline
Isis Pharmaceuticals

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

On CAPS, 25% of the 249 members who have rated Sarepta believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, All-Star pavlos1971, cautioned Fools about getting too excited over over Sarepta's Duchenne muscular dystrophy drug:

Congratulations to Sarepta (formerly AVI) for bringing a very promising technology one step closer to becoming a cure. My red thumb in CAPS marks what I believe is an exaggerated emotional reaction to a great result in the phase IIb trial. ... The importance of the fact that eteplirsen has shown no side effects thus far cannot be overstated, of course, but I still see a long path prior to regulatory approval. This is one of the few cases where I wish I am wrong in CAPS.   

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The article 1-Star Stocks Poised to Plunge: Sarepta Therapeutics? 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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