Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, stem cell company Osiris Therapeutics (Nasdaq: OSIR ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Osiris' business and see what CAPS investors are saying about the stock right now.
Osiris facts
| Headquarters (founded) |
Columbia, Md. (1992) |
| Market Cap |
$454.3 million |
| Industry |
Biotechnology |
| Trailing-12-Month Revenue |
$36.6 million |
| Management |
CEO Charles Mills (since 2004)
CFO Philip Jacoby Jr. (since 2009) |
| Return on Equity (average, past 3 years) |
(4.3%) |
| Cash/Debt |
$43.2 million / $0 |
| Competitors |
Abbott Labs
Biogen Idec
UCB |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 48% of the 71 All-Star members who have rated Osiris believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those Fools, All-Star TSIF, tapped the stock's recent surge as seemingly unsustainable:
[Stem cell therapy Prochymal] was approved for use in limited situations in Canada last month starting the cycle of speculation and short covering and now by New Zealand. The market is limited, although costing may be high. ...
Osiris has other irons in the fire, but nothing of consequence in the near term.
The reality is that Osiris Therapeutics, Inc has a high cash burn rate and I fully expect them to take this near doubling in three weeks to execute additional financing. In the meantime, I don't expect the orders cover the manufacturing cost and the increase in S&G to get market growth.
Once the shorts lick their wounds and leave this low float equity alone for a time and speculators get "bored" Osiris share price will retreat.
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