Why Sunesis Is Poised to Pull Back

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Sunesis Pharmaceuticals has received the dreaded one-star ranking.

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

Sunesisfacts

Headquarters (founded)

South San Francisco, Calif. (1998)

Market Cap

$319.3 million

Industry

Biotechnology

Trailing-12-Month Revenue

$1.8 million

Management

CEO Daniel Swisher Jr. (since 2004)
CFO Eric Bjerkholt (since 2004)

Return on Equity (average, past 3 years)

(53.5%)

Cash/Debt

$76.6 million / $24.0 million

Competitors

AstraZeneca
Corden Pharma Switzerland LLC
Pfizer


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

On CAPS, 41% of the 32 All-Star members who have rated Sunesis 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 bear case for our community:

The Sunesis seems to be rising again but it looks to me like a rising tide phenomenon. As I've said before, the requirement to increase enrollment after the interim analysis last September was the second worst possible outcome. VALOR is unlikely to return a positive result and there is absolutely no reason for the share price to be rising more than a year ahead of topline data. It seems the lessons of Celsion haven't been learned.

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The article Why Sunesis Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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