2-Star Stocks Poised to Plunge: Synta Pharmaceuticals?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Synta Pharamaceuticals (Nasdaq: SNTA) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Synta and see what CAPS investors are saying about the stock right now.
Synta facts
Headquarters (Founded) | Lexington, Mass. (2000) |
Market Cap | $440.3 million |
Industry | Biotechnology |
Trailing-12-Month Revenue | $5.2 million |
Management | Co-Founder/CEO Dr. Safi Bahcall |
Trailing-12-Month Return on Capital | (70.9%) |
Cash/Debt | $44.7 million / $16.3 million |
Competitors | Infinity Pharmaceuticals |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 16% of the 168 members who have rated Synta believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star zzlangerhans, touched on Synta's seemingly unsustainable valuation:
Hsp90 inhibitor Ganetespib is certainly in a lot of mid-stage trials but thus far in 2012 we haven't seen the kind of exciting interim data that management led us to expect. There's certainly a lot more info to come, but with Synta's poor developmental track record so far I see a market cap of [$450M] as excessively optimistic.
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The article 2-Star Stocks Poised to Plunge: Synta Pharmaceuticals? originally appeared on Fool.com.
Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.
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