1-Star Stocks Poised to Plunge: Cell Therapeutics?

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

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

Cell Therapeutics facts

Headquarters (founded) Seattle (1991)
Market Cap $192.2 million
Industry Biotechnology
Trailing-12-Month EBITDA ($77.1) million
Management Co-Founder/CEO Dr. James Bianco
Co-Founder/CFO Louis Bianco
Trailing-12-Month Return on Assets (104.8%)
Cash / Debt $14.8 million / $0
Competitors Bristol-Myers Squibb
Roche Holding
Sanofi

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

On CAPS, 46% of the 52 All-Star members who have rated Cell Therapeutics believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, zzlangerhans, tapped the stock's recent surge as particularly unsustainable:

Somehow, Cell Therapeutics has always had their coterie of rabid adherents despite the absolutely laughable loss of shareholder value over the last decade. It's like no one ever looks at the long-term price chart before buying this stock. CEO Jim Bianco continues to follow his pattern of purchasing cheap castoffs from other biotechs in order to prolong the life of his company and justify the endless cycle of capital raises and reverse splits he's become famous for. It's painful to even spend the time to review the pipeline because it's so obvious that no success will ever come from this company. Next disappointment is likely to be crappy revenues from Pixuvri in Europe.

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Fool contributor Brian Pacampara owns no position in any of the companies 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 Fool's disclosure policy always gets a perfect score.

Read/Post Comments (8) | Recommend This Article (13)

Comments from our Foolish Readers

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  • Report this Comment On September 13, 2012, at 8:48 PM, oracleatdelphi66 wrote:

    Fool needs better research, CTI added an additonal $15 M in July.More important than Fool"s usual imperfections is the fact that CTI stuck with it and brought an approved drug to market to a group of cancer patients who never had an approved therapy before. Dan Eramian, CTI

  • Report this Comment On September 14, 2012, at 9:46 AM, TSIF wrote:

    This was a quick pitch by a CAPS player. I know that means nothing to most of you, but no pretention here of being an analyst. I would note the "player" has an 80% plus accuracy rates on biopharms.

    I wrote a more detailed pitch this week as well.

    To oracleatdelphi66: $15 Million is not a drop in the burn rate of this company. Check their cash on hand and their burn rate.

    The approved therapy was in Europe on a limited release. Hope is a powerful tool and any help they provide should be applauded. It, however, as much as we appreciate help against cancer has little to do with the company as an investment. I suggest if you follow medical biopharms from a financial aspect that add financial metrics to your analysis. Good luck.

  • Report this Comment On September 14, 2012, at 11:53 AM, TSIF wrote:

    I'm sorry Dan, I missed the connection that you are VP of Communciations at CTI. Appreciate your dropping in to help clarify and that you watch out for these "articles".

    I'll be the first to agree that CAPS player pitches do not work well as "articles" that fill the newsfeeds with with thieir plunge titles to attract new subscribers to MF's paid services.

    I'm a little curious though. You sold 95,000 shares of CTIC on August 23rd for $0.40 per share.....did you have no faith in the EU approval or potential??

    I know you need to sell from time to tell for tax purposes to cover other grants, perfectly understandable, but in August at $0.40??

    I hope you had a filing in to sell into this strength. It might be a /have been a good time to sell some of your other 1.8 MILLION Shares of options granted to you. (Doubt this was adjusted for the last reverse split, but a nice quantity none the less).

    About those reverse splits?? Have you been there long?? I'm sure you're aware of this CTIC "funfact" fellow fool geneticbiscuit calculated:

    "Fun fact - if you bought 1200 shares of CTIC back in late 2006, you would now have 1 (one!) share due to 4 reverse splits since early 2007 (1:4, 1:10, 1:6, and most recently 1:5).

    That would be a $1,900 or so investment for that one share that is dropping from $3.80 to $2.80 the last few days.........

    Of course past performance is no guarantee of future performance, and again, I wish you well on the drug approval in the EU and your limited launch cycle.

  • Report this Comment On September 14, 2012, at 11:56 AM, TSIF wrote:

    Actually Dan, considering the last 1:5 reverse split, you sold your shares pre-rally, pre-split adjusted at $2.00 per share. Same questions, but much better deal....

    Good luck.

  • Report this Comment On September 18, 2012, at 5:47 PM, OBAMABB wrote:

    Mottley fool has bashed CTIC 70 times in the last 8 months it works for the shorts to steal all the money it can for its short buddies!

    this is why CTIC is the price it is cause crooks like here every time the PPS starts to rise you can bet these thieving losers will chime in!

  • Report this Comment On September 18, 2012, at 7:48 PM, TSIF wrote:

    I've seen many, many, more pumpers than I have bashers around some of these smaller biopharms. They pump it up and take the newbies for a ride. In my opinions the pumpers are worse than the shorts. Easy to blame it on the "shorts" when you have conviction bias or are a pumper and/or you don't know how to value a stock....

  • Report this Comment On September 19, 2012, at 10:06 AM, OBAMABB wrote:

    pumpers are worse than the shorts....

    Yea OK if you say so!

    that's why you see Bashers fill the boards wall to wall then watch the price plummet!

    All it takes is Mottly fool or Adam comes out with a basher articles like mottley over 70 bashes in the last 8 months!

    People in the know, know it a concerted effort by a group of criminals to steal large sums of money!

    Just watch Deep Capture Crammer explains it well!

  • Report this Comment On September 19, 2012, at 10:58 AM, TSIF wrote:

    Ok, I see now Obama_BB, it's okay if it spikes 100% in four trading days between Sept 5th and Sept 11th, on speculation, pumpers, computer trading and a short squeeze. It's not okay if people think the 100% spike in 5 days is unrealistic for a company bleeding money and doing constant dilutive financing. The 20% retrace in six trading days after a 100% unwarranted spike should be a crime.

    The same double occured on March 10, 2011 from $6.30 to $13.80. Sometimes it's good to step back and take note, history does repeat itself.

    There is more manipulation, more day traders, more speculators, more pumpers, more computer trading and probably more short in the markets than any other time. The share price on "one of these" can react both ways. Learn to trade it or ride it, but most importantly pay attention to where it settles. In the case of small biopharms you'll have many more losers than winners. If you believe in the company and don't want to "trade it", then ride it, but it may be worth some folks time to step back and figure out how things work....in both directions.

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