1-Star Stocks Poised to Plunge: Neptune Technologies?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology companyNeptune Technologies & Bioresources (NAS: NEPT) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Neptune's business and see what CAPS investors are saying about the stock right now.
Neptunefacts
Headquarters (founded) | Laval, Canada (1925) |
Market Cap | $229.8 million |
Industry | Personal products |
Trailing-12-Month Revenue | $20.9 million |
Management | CEO Henri Harland (since 1998) |
Return on Equity (average, past 3 years) | (17.3%) |
Cash/Debt | $12.8 million / $6.0 million |
Competitors | AMS Health Solutions |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 85% of the 171 members who have rated Neptune believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those bears, All-Star TSIF, touched on Neptune's seemingly unsustainable valuation:
Yes, I see growth potential if Krill hits the nutrition market, but too much growth is already factored in. I've gotten burned by some of these wanna be vitamin, save the world, cure the common cold plays in the past before reality settles in. ...
There are getting to be too many shares outstanding and the scales will eventually tip.
Market cap $229 Million on a company with negative cash flow and a $0.55 book value. Made it to the Nasdaq which also caused me to hold my thumb, but NO institutional investors to soak up shares. ...
Overvalued even if one accepts the medical benefits. Needs to get cash flow positive and make up some book value ground to merit market cap OR market cap needs to come back down.
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The article 1-Star Stocks Poised to Plunge: Neptune Technologies? originally appeared on Fool.com.
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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