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4

1-Star Stocks Poised to Plunge: Orexigen Therapeutics?

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

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

Orexigen facts

Headquarters (founded) La Jolla, Calif. (since 2002)
Market Cap $399.9 million
Industry Biotechnology
Trailing-12-Month Revenue $3.4 million
Management CEO Michael Narachi (since 2009)
Acting CFO Joseph Hagan (since 2011)
Return on Capital (average, past 3 years) (51.4%)
Cash/Debt $138.6 million / $0
Competitors Abbott Labs
Arena Pharmaceuticals
(Nasdaq: ARNA  )
GlaxoSmithKline

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

On CAPS, 24% of the 262 All-Star members who have rated Orexigen believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, jed71, cautioned Fools about getting too excited over Orexigen's recent speculation-fueled surge:

Obesity drug still not approved yet. Run up based on expectations and approval received by a different company, Arena Pharma, for a similar obesity drug. It will not hold the run up, because, well, [Orexigen] never holds these run ups.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Abbott. 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.


Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 29, 2012, at 12:44 PM, mincasa wrote:

    Monkey see ,Monkey do attitude with traders who lack any common sense or real market experience. The only one's benefeting from this run up are the WS theives and they will be pulling the rug from all these ARNA investors who made money and about to loose it all to OREX and VVUS.. be careful, and do your DD before thinking that you are (day traders) are the king of the hill. Big thugs on WS are bating the week hands..OREX and VVUS are the riskiest stocks at the moment. ARNA is in a much lower risk, ad they are in a different stage and playing in a different field..pls.do not get exicted and let greed blind you, you will loose ..good luck and god bless you all,

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Related Tickers

6/19/2013 4:00 PM
OREX $6.33 Down -0.05 -0.78%
Orexigen Therapeut… CAPS Rating: **
ARNA $7.61 Up +0.10 +1.33%
Arena Pharmaceutic… CAPS Rating: **

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