Why BioTime Is Poised to Underperform

Updated

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

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

BioTime facts

Headquarters (founded)

Alameda, Calif. (1990)

Market Cap

$249.6 million

Industry

Biotechnology

Trailing-12-Month Revenue

$3.9 million

Management

CEO Dr. Michael West (since 2007)

CFO Peter Garcia (since 2011)

Return on Capital (average, past 3 years)

(59.1%)

Cash/Debt

$9.9 million/$0

Competitors


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

On CAPS, 45% of the 96 members who have rated BioTime believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our community:

BioTime is going nowhere fast, but the [S]treet apparently isn't seeing it as the stock is up more than 30% from recent lows over the last month despite an absence of catalysts. The company's only 2013 achievement is the purchase of Geron's cast-off stem cell platform, which serves only as another distraction from the company's dismal revenues, pathetically low cash reserves, and ominously large quarterly burn. Prior distraction Renevia can't seem to generate enough interest in Europe to set them on a path to a CE Mark. That's kind of like being refused the smiley face on your first grade animal picture quiz. And recent distraction PanC-Dx didn't even merit a mention in the most recent PR.

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The article Why BioTime Is Poised to Underperform originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no position in any 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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