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Why Oncolytics Biotech Is Poised to Plunge

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December 4, 2012 | Comments (5)

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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Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of GlaxoSmithKline. Motley Fool newsletter services recommend GlaxoSmithKline. 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 Motley Fool has a disclosure policy.


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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5/24/2013 3:59 PM
ONCY $2.62 Down -0.10 -3.68%
Oncolytics Biotech… CAPS Rating: *
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