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

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

Pluristem facts

Headquarters (founded)

Haifa, Israel (2001)

Market Cap

$211.3 million

Industry

Biotechnology

Trailing-12-Month Revenue

$757,000

Management

Chairman/CEO Zami Aberman
CFO Yaky Yanay

Trailing-12-Month Return on Capital

(25.4%)

Cash/Debt

$68.3 million / $0

Competitors

Aastrom Biosciences (NAS: ASTM)
Advanced Cell Technology
Osiris Therapeutics (NAS: OSIR)


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

On CAPS, 41% of the 61 members who have rated Pluristem believe the stock will underperform the S&P 500 going forward.

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

[CEO Zami Aberman] predictably took advantage of his anecdotal claims that PLX cells were responsible for successful bone marrow transplantation in three instances, although there has been no clinical trial in which PLX cells were utilized for this purpose. I don't have much sympathy for those who bought into the dilutive financing at [$4 per share], since they should have known the share price is unlikely to see that level again for a while until dilution becomes necessary again. The company now has to slog through enrollment of the phase II trial of PLX cells in intermittent claudication and it is unclear if a single patient has yet been treated. I see a descent below [$3 per share] if not further as Aberman lowers the company's profile for the rest of the year.

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

The article 1-Star Biotech Stocks Poised to Plunge: Pluristem Therapeutics? originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Introduction to Economic Indicators

Measure the performance of the economy.

View Course »

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

Add a Comment

*0 / 3000 Character Maximum