2-Star Stocks Poised to Plunge: Onyx Pharmaceuticals?
Jun 19th 2012 11:19AM
Updated Jun 19th 2012 11:50AM
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Onyx Pharmaceuticals (NAS: ONXX) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Onyx's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||San Francisco (1992)|
|Market Cap||$2.8 billion|
|Trailing-12-Month Revenue||$452.1 million|
|Management||CEO Dr. N. Anthony Coles (since 2008)
CFO Matthew Fust (since 2009)
|Return on Equity (average, past 3 years)||(2.6%)|
|Cash/Debt||$600.0 million / $165.6 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 14% of the 448 members who have rated Onyx believe the stock will underperform the S&P 500 going forward.
Onyx stock has performed strongly in recent weeks despite broad market instability. You'd think that carfilzomib approval in July would be in the bag with that kind of strength but that's not how I read the pundits. [Onyx] is shooting for accelerated approval of carfilzomib but they didn't get priority review and efficacy was marginal, especially when strict criteria for unmet medical need are applied.
Meanwhile, the company continues to lose money briskly and Nexavar has shown no sign of broadening its appeal beyond kidney and liver cancer. [Onyx] still has many shots on goal in their future, but I think the goalie is in good position to block the next one.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Pfizer. 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 Fool's disclosure policy always gets a perfect score.
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