2-Star Stocks Poised to Plunge: POZEN?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmaceutical company POZEN (NAS: POZN) has received a distressing two-star ranking.
With that in mind, let's take a closer look at POZEN's business and see what CAPS investors are saying about the stock right now.
POZENfacts
Headquarters (founded) | Chapel Hill, N.C. (1996) |
Market Cap | $200.4 million |
Industry | Pharmaceuticals |
Trailing-12-Month Revenue | $83.8 million |
Management | Co-Founder/Chairman/CEO Dr. John Plachetka |
Return on Equity (average, past 3 years) | 26.3% |
Cash/Debt | $100.8 million / $0 |
Competitors | AstraZeneca |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 14% of the 222 members who have rated POZEN believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our community:
Pozen seems to have a neverending supply of optimistic investors who think that the next drug they get approved will be a commercial success. First Treximet and then Vimovo proved to be predictable failures, and I don't see any reason why PA32540 won't follow the same path. There may still some good times with FDA approval and bullish remarks from sell-side analysts, but ultimately I think we're looking at a retracement of the lows.
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At the time thisarticle was published 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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