Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug developer Avanir Pharmaceuticals (Nasdaq: AVNR ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Avanir's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Aliso Viejo, Calif. (1988)|
|Market Cap||$537.3 million|
|Trailing-12-Month Revenue||$24.5 million|
|Management||CEO Keith Katkin
Principal Financial Officer Christine Ocampo
|Return on Equity (average, past 3 years)||(106.8%)|
|Cash/Debt||$66.7 million / $0|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 24% of the 256 members who have rated Avanir believe the stock will underperform the S&P 500 going forward.
This came up in a screen for stocks with the highest gains in the last 4 weeks. With a fair [book value per share] of $0.44 this company is greatly overvalued. Cash is shrinking every quarter along with shareholders' equity, which stands at only $60 million as of 1Q12. Should be an easy red-thumb target.
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