Why Sunesis Is Poised to Pull Back
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company has received an alarming 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 | $280.8 million |
Industry | Biotechnology |
Trailing-12-Month Revenue | $5.7 million |
Management | CEO Daniel Swisher Jr. (since 2004) |
Return on Capital (average, past 3 years) | (61.2%) |
Cash/Debt | $61.0 million / $23.8 million |
Competitors | Corden Pharma Switzerland LLC |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 30% of the 96 members who have rated Sunesis 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 ommunity:
Sunesis seems to have settled into a tight trading range since March, and I see [$5.50 per share] as a good trigger to set an underperform so as to take maximal advantage of the fluctuations. I'll likely stick with red thumbs because I think the stock is massively overvalued considering the negative implications of the 2012 interim analysis, which I delineated in one of my previous underperform pitches. As of now, topline data from the VALOR trial is expected in H1 2014 and I'm hoping for a huge upward run that will make puts enormously profitable.
While you can certainly make quick gains in hot 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 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
