Why BioTime Is Poised to Underperform
With that in mind, let's take a closer look at BioTime and see what CAPS investors are saying about the stock right now.
Alameda, Calif. (1990)
CEO Dr. Michael West (since 2007)
CFO Peter Garcia (since 2011)
Return on Capital (average, past 3 years)
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.
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.
While you can certainly make quick gains in speculative biotech stocks, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
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.