4-Star Stocks Poised to Pop: Alkermes

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, small-cap biotech Alkermes (Nasdaq: ALKS) has earned a respected four-star ranking.

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

Alkermes facts

Headquarters (Founded)	Cambridge, Mass. (1987)
Market Cap	$775.2 million
Industry	Biotechnology
Trailing-12-Month Revenue	$295.2 million
Management	Chairman/CEO Richard Pops CFO James Frates
Return on Equity (Average, Past Three Years)	40.3%
Competitors	Bristol-Myers Squibb (NYSE: BMY) Forest Laboratories (NYSE: FRX) Eli Lilly (NYSE: LLY)
CAPS Members Bullish on ALKS Also Bullish on	Johnson & Johnson (NYSE: JNJ) General Electric (NYSE: GE)
CAPS Members Bearish on ALKS Also Bearish on	Krispy Kreme Doughnuts (NYSE: KKD)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 213 members who have rated Alkermes believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars mrindependent and zzlangerhans, both of whom are ranked in the top 2% of our community.

Just last week, mrindependent channeled the power of CAPS and followed the lead of two respected leaders:

Relying heavily on the analysis of zzlangerhans. Also influenced by recent green thumbs by portefeuille. This stock has been heavily punished in the last 3 months, so the next big move is likely to be up.

And of course, here's an excerpt from the aforementioned pitch by zzlangerhans:

Alkermes is an up-and-down kind of stock that is constantly bucked and tossed between opposing waves of optimism and pessimism. My trigger finger has been itching since it dropped below 8. … I can't imagine this stock making a new five year low in this market, with the stable income from Risperdal Consta limiting their losses and an impending massive PDUFA for weekly exenatide in March 2010. The current weakness seems to be a shortsighted response to a minor earnings shortfall in the midst of a declining trend. Sure, the trend could carry the stub below 7 in the short-term, but if Alkermes is below 15 prior to the PDUFA I'll be surprised.

What do you think about Alkermes, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!