Why Regulus Therapeutics Is Poised to Keep Plunging

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

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

Regulus facts

Headquarters (founded)

San Diego, Calif. (2007)

Market Cap

$1 billion

Industry

Biotechnology

Trailing-12-Month Revenue

$12.7 million

Management

CEO Dr. Kleanthis Xanthopoulos (since 2009)
COO Dr. Garry Menzel (since 2009)

Trailing-12-Month Return on Equity

(55%)

Cash/Debt

$98.1 million / $10.1 million


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

On CAPS, 85% of the 13 members who have rated Regulus believe the stock will underperform the S&P 500 going forward.

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

They have an enterprise value of [$150M] and all they have to justify it is their [Isis Pharmaceuticals/Alnylam Pharmaceuticals] pedigree. They won't be submitting an IND for their first microRNA therapeutic until 2014, and their existing partnerships don't provide much income. What concerns me the most is that their lead compound is an intravenous therapy for Hepatitis C. Where has management been for the last five years, as other companies have been demonstrating high rates of cure with all-oral regimens? The company now admits they will only be able to target a niche population that has failed other therapies. If that's the best we can hope for from microRNA, I'll stick with RNAi.

While you can certainly make quick gains in speculative biotechs like Regulus, 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.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Regulus Therapeutics Is Poised to Keep Plunging 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.

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