1-Star Stocks Poised to Plunge: Sarepta Therapeutics?

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

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

Sarepta facts

Headquarters (founded) Bothell, Wash. (1980)
Market Cap $857.9 million
Industry Biotechnology
Trailing-12-Month Revenue $43.5 million
Management CEO Christian Garabedian
Principal Accounting Officer Michael Jacobsen
Return on Equity (average, past 3 years) (90.2%)
Cash/Debt $24.5 million / $1.8 million
Competitors Alnylam Pharmaceuticals
GlaxoSmithKline
Isis Pharmaceuticals

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

On CAPS, 25% of the 249 members who have rated Sarepta believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, All-Star pavlos1971, cautioned Fools about getting too excited over over Sarepta's Duchenne muscular dystrophy drug:

Congratulations to Sarepta (formerly AVI) for bringing a very promising technology one step closer to becoming a cure. My red thumb in CAPS marks what I believe is an exaggerated emotional reaction to a great result in the phase IIb trial. ... The importance of the fact that eteplirsen has shown no side effects thus far cannot be overstated, of course, but I still see a long path prior to regulatory approval. This is one of the few cases where I wish I am wrong in CAPS.   

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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 (5) | Recommend This Article (2)

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 October 05, 2012, at 11:46 AM, USAGARY1 wrote:

    Such a foolish waste of text,I would do some research like others before commenting on Companies or sciences you no nothing about..

  • Report this Comment On October 05, 2012, at 3:01 PM, redplate wrote:

    How about a little diligence folks. Somebody here from the bio-industry? Didn't think so. Try reading PDUFA V and get primed for rare disease approvals on ph 2 data. Sorry you all missed the run, but that doesn't mean this should now 'plunge'. How about the U partner news that IS coming or the FDA news that is also coming, and will be good.

  • Report this Comment On October 05, 2012, at 3:23 PM, Rick1961 wrote:

    I have a son with Duchenne and bought this stock when it was AVII. I've ridden this up and down. Would I get in right now, not sure. Would I sell right now, not a chance. Our sons are dying before our eyes. With zero hope for DMD boys from any other source this drug is poised for fast track approval. If this happens the stock price will double at least from where it's at now. I can only say my investment in AVII when it was about 80 cents a share will allow me to help fund further research.

  • Report this Comment On October 05, 2012, at 11:42 PM, DrBigGun wrote:

    Been long on this stock for >15 years adding whenever i could. The technology is as compelling as the results. People don't recognize a breakthrough drug when they see one. Do your due diligence. Once the short term profiteers get through then the stock will resume its climb rewarding those who are in early.

    My Foolish scorecard says SRPT is up 2806.8%.

    Future increases will not be as rapid but you can't successfully short something that is new, changes lives and works.

    1 star indeed..

    Fools are on.

  • Report this Comment On October 10, 2012, at 12:29 PM, TSIF wrote:

    Interesting DrBigGun, your only caps call on this one was down at $17 (pre split) in FEB 2007. You closed the downcall 2 days ago after the spike. The most anyone could be up would be about 1,000 and that would be if they bought it last May/June. Most investors who are long are still down. Good luck.

    Rick1961, prayers and best wishes for your son. I also compliment you on your investment awareness. Biopharm are a long road and few are succesful. I hope this one is for you and your son.

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