Why Oncolytics Biotech Is Poised to Plunge

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnologist Oncolytics Biotech (Nasdaq: ONCY  ) has received the dreaded one-star ranking.

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

Oncolytics facts

Headquarters (founded)

Calgary, Canada (1998)

Market Cap

$169.5 million

Industry

Biotechnology

Trailing-12-Month EBITDA

($40.2 million)

Management

Chairman/CEO Bradley Thompson
CFO Kirk Look

Return on Equity (average, past 3 years)

(124.2%)

Cash/Debt

$28.5 million / $0

Competitors

GlaxoSmithKline (NYSE: GSK  )
Infinity Pharmaceuticals (Nasdaq: INFI  )
Medivation (Nasdaq: MDVN  )

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

On CAPS, 25% of the 87 members who have rated Oncolytics believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, tapped the stock's recent bounce as particularly unsustainable:

I'm fairly confident that Reolysin is inactive, so I'll take any excuse to red thumb Oncolytics until it eventually goes to zero. I missed the lion's share of the decline but there's been no good news to explain the recent change in momentum. I suspect a fresh round of dilution will come before any significant data release from ongoing Reolysin trials.

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Read/Post Comments (5) | Recommend This Article (5)

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 December 04, 2012, at 1:56 PM, rtiq wrote:

    If you have confidence in your negative view, you should short ONC/Y. And, tell your family and friends to short it too.

  • Report this Comment On December 13, 2012, at 11:15 AM, tbenbrahim wrote:

    Only problem is oncy is up 27% today. Sometimes it pays to fade the crowd

  • Report this Comment On December 13, 2012, at 11:17 AM, tbenbrahim wrote:

    Only problem is oncy is up 58% today. Sometimes it pays to fade the crowd (my previous post incorrectly said 27%). I hope to be able to say up 100% in a month or so.

  • Report this Comment On December 13, 2012, at 1:09 PM, justjimn wrote:

    The contrarian view strikes again. 180,000 investors can't always be right.

  • Report this Comment On December 13, 2012, at 4:09 PM, tbenbrahim wrote:

    @justjimn, the sad thing is that is was only an 87 person sample, per the article above, and only 25% of that 87 (22-23) believed it would underperform the S&P. I think the article was generated by a robot, I hope the rest of the content on the site has a bit more value, to put in diplomatic terms

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