1-Star Stocks Poised to Plunge: MAP Pharmaceuticals?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug developer Map Pharmaceuticals (NAS: MAPP) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at MAP's business and see what CAPS investors are saying about the stock right now.
MAPfacts
Headquarters (founded) | Mountain View, Calif. (2003) |
Market Cap | $479.2 million |
Industry | Pharmaceuticals |
Trailing-12-Month Revenue | $23.5 million |
Management | CEO Timothy Nelson |
Return on Equity (average, past 3 years) | (66.3%) |
Cash/Debt | $79.0 million / $0 |
Competitors | GlaxoSmithKline |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 30% of the 96 members who have rated MAP 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:
Initially it looked like MAP would get off scot free from their [Complete Response Letter] for Levadex in March. But after quivering for a few days, the share price started to sink once it became clear that it would be at [least] a year before the next PDUFA and the company would almost certainly be raising cash. The stock bottomed about a month ago at [$11.27] and then embarked on a paradoxical upswing. The company met with the FDA this week and made vaguely optimistic remarks about believing that no new studies needed to be performed for inclusion in the resubmission. Even so, the resubmission probably won't occur until Q4 and I expect a six month class II review. Now there's nothing much to do except sit back and wait for the dilutive financing.
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another small-cap growth play with big potential. The report is 100% free, but it won't be around 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 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
