2-Star Stocks Poised to Plunge: Arena Pharmaceuticals?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, clinical-stage biotechnology company Arena Pharmaceuticals (NAS: ARNA) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Arena's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||San Diego, Calif. (1997)|
|Market Cap||$499.8 million|
|Trailing-12-Month Revenue||$11 million|
|Management||Co-Founder/Chairman/CEO Dr. Jack Lief|
Co-Founder/Chief Scientific Officer Dominic Behan
|Return on Capital (average, past 3 years)||(33.4%)|
|Cash/Debt||$88.2 million / $87.8 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 9% of the 689 members who have rated Arena believe the stock will underperform the S&P 500 going forward.
One is that while the actual meeting doesn't take place until May 10, the FDA will release briefing documents on May 8. I think while the committee vote is a toss-up, the briefing documents are much more likely to be negative and drive the share price downward. ...
The second reason is that I want to be on [Adam Feuerstein's] side of this call. While his detractors endlessly point to the same incorrect or partially incorrect calls after years have passed, Feuerstein has continued make confident predictions the vast majority of which prove to be accurate. Some recent beauties are the abject failure and impending bankruptcy of Radient Pharmaceuticals, the downward trajectory of Biosante, and of course the negative result of the phase III trial of perifosine for Keryx and Aeterna Zentaris.
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
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 GlaxoSmithKline. 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.