1-Star Stocks Poised to Plunge: Zogenix?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmaceutical company Zogenix (NAS: ZGNX) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Zogenix's business and see what CAPS investors are saying about the stock right now.
Zogenixfacts
Headquarters (founded) | San Diego (2006) |
Market Cap | $234.5 million |
Industry | Pharmaceuticals |
Trailing-12-Month Revenue | $44.7 million |
Management | CEO Roger Hawley |
Trailing-12-Month Return on Capital | (139.3%) |
Cash/Debt | $22.0 million / $52.4 million |
Competitors | AstraZeneca |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 38% of the 47 members who have rated Zogenix believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those Fools, All-Star zzlangerhans, succinctly summed up the Zogenix bear case for our community:
There's clearly a committed base following of this stock, since the share price is rising despite predictably weak and declining revenues from Sumavel DosePro and a nasty 47.5M share dilutive financing (warrants with a below market strike might as well be shares). Who's that white knight on the horizon? None other than Zohydro, yet another superfluous oral opiate tablet that will fail to take market share from generic hydrocodone and oxycodone. I don't think I'll have to wait until the rundown after the PDUFA next March to close this pick.
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The article 1-Star Stocks Poised to Plunge: Zogenix? 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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