Why MAP Pharmaceuticals Is Poised to Plunge

Updated

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 has received the dreaded one-star ranking.

With that in mind, let's take a closer look at MAP and see what CAPS investors are saying about the stock right now.

MAPfacts

Headquarters (founded)

Mountain View, Calif. (2003)

Market Cap

$544.5 million

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$3.6 million

Management

CEO Timothy Nelson (since 2005)
Co-Founder/Chief Scientific Officer Dr. Thomas Armer (since 2003)

Return on Capital (average, past 3 years)

(57.4%)

Cash/Debt

$114.2 million / $0

Competitors

GlaxoSmithKline
Merck
Par Pharmaceutical Companies


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 34% 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 BlacknGold, succinctly summed up the MAP bear case for our community:

MAP has no revenue and is losing large amounts of money each quarter (four in a row now). Before the recent financing deal it was worth less than $14 million on paper. Even now it's worth less than $60 million, which doesn't support a $540 million market cap.

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The article Why MAP Pharmaceuticals Is Poised to Plunge originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend GlaxoSmithKline. 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 Motley Fool has a disclosure policy.

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