2-Star Stocks Poised to Plunge: Neurocrine Biosciences?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Neurocrine Biosciences (NAS: NBIX) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Neurocrine's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||San Diego, Calif. (1992)|
|Market Cap||$535.9 million|
|Trailing-12-Month Revenue||$77.4 million|
|Management||CEO Kevin Gorman|
CFO Timothy Coughlin
|Return on Equity (average, past 3 years)||(74.8%)|
|Cash/Debt||$129.1 million / $0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 14% of the 366 members who have rated Neurocrine believe the stock will underperform the S&P 500 going forward.
Good potential, especially with Elagolix, but I'm still short on [Neurocrine] just like I was over a year ago. There is simply too much uncertainty over being able to turn a profit in the next few years. Estimates range from 20 cents EPS in 2012 to losing 10 cents. 2013's outlook is fairly similar and it isn't until 2014 that it may be possible for them to turn a strong profit. However, there is much work to do before then and I will be short on this one until they prove they can turn a profit on a consistent basis. I've taken a flat out beating on this one so far, but I still can't justify it being worth this much until there is more concrete data.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Abbott. Motley Fool newsletter services have recommended buying shares of Abbott and 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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