1-Star Stocks Poised to Plunge: Infinity Pharmaceuticals?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Infinity Pharmaceuticals (NAS: INFI) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Infinity's business and see what CAPS investors are saying about the stock right now.
|Market Cap||$213.7 million|
|Trailing-12-Month Revenue||$84.3 million|
|Management||CEO Adelene Perkins|
Principal Accounting Officer Christopher Lindblom
|Return on Equity (average, past 3 years)||(35.5%)|
|Cash/Debt||$74.6 million / $0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 25% of the 85 members who have rated Infinity believe the stock will underperform the S&P 500 going forward.
Infinity, I'm not feeling a comeback here. You used to make a pretty good case as an Energizer Bunny, with more than [$100M] in cash reserves and two distinctive phase II oncology candidates. But that was before a string of failures for retaspimycin, and now saridegib is starting to take the same route. The cash position will be down to about [$65M] when the next quarterly numbers come out in a couple of weeks, and we know you like to raise money long before it's really necessary. And you want a [$190M] market cap for that? Call me back after the dilutive financing when the cap is closer to [$150M] and the share price back under [$6], and we'll talk.
What do you think about Infinity, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
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. 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.