Why Cerus 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, biomedical products company Cerus (Nasdaq: CERS  ) has received a distressing two-star ranking.

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

Cerus facts

   

Headquarters (founded)

Concord, Calif. (1991)

Market Cap

$183.0 million

Industry

Healthcare supplies

Trailing-12-Month Revenue

$36.7 million

Management

CEO William Greenman
Co-Founder/Chief Medical Officer
Dr. Laurence Corash

Return on Capital
(average, past 3 years)

(49.5%)

Cash/Debt

$26.7 million / $8.2 million

Competitors

Gen-Probe
Haemonetics
(NYSE: HAE  )
Pall
(NYSE: PLL  )

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

On CAPS, 29% of the 35 All-Star members who have rated Cerus believe the stock will underperform the S&P 500 going forward.

Earlier today, one of those Fools, BlacknGold, succinctly summed up the bear case for our community:

Cerus recovered nicely from two horrible quarters (4Q11 and 1Q12) by dramatically slashing losses without increasing revenue. The improvement in efficiency is nice to see, but ultimately the company is still way over priced. With only $17 million in shareholders' equity and losses mounting every quarter there is little reason it should sport a market cap of $187 million. Underperform long term.

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Read/Post Comments (1) | 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 December 28, 2012, at 4:21 PM, moneymog wrote:

    I am so glad that The Fool found a number such as 29% that feel Cerus is poised for a fall. That means some 29% of the All Star fool bunch will buy into the New, Better, Improved stock that is being hawked if the reader shells out more $ and personal info. In the mean while, I get the chance of being able to buy more CERS at a lower price. It is a win-win for me and the Motley Fool, others misinformed be damned. My portfolio of CERS is up over 200% in just a few years. My New Years wish (will be 'reality' as usual) is that the hourly and day traders and the less than long term investors in CERS keep letting the stock go at (looking back in time) ridiculous prices. It was a real bargain at $1.08 per share, thanks and Have a prosperous New Year !!!

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