Why Vical Will Keep Plunging

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Vical (Nasdaq: VICL  ) has received a distressing two-star ranking.

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

Vical facts

   

Headquarters (founded)

San Diego, Calif. (1987)

Market Cap

$264.4 million

Industry

Biotechnology

Trailing-12-Month Revenue

$17.1 million

Management

CEO Vijay Samant (since 1990)
CFO Jill Broadfoot (since 2004)

Return on Equity
(average, past 3 years)

(28.8%)

Cash/Debt

$86.9 million / $0

Competitors

GlaxoSmithKline (NYSE: GSK  )
Novartis
(NYSE: NVS  )
Sanofi
(NYSE: SNY  )

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

On CAPS, 8% of the 178 members who have rated Vical believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our community:

Vical has concluded yet again that patients in the phase III trial of Allovectin-7 are living longer than expected, resulting in another lengthy delay before topline data will be released. Naturally, Vical bulls see this as a positive, concluding that it is an indicator that patients are living longer in the treatment arm. That sounds like an old story that I heard earlier this year with [Keryx Pharmaceuticals (Nasdaq: KERX  ) ] and perifosine, with an unfortunate outcome for the bulls. I believe I've seen similar outcomes from prolonged phase III trials previously, but I can't remember one where the bull thesis turned out to be correct.

I've seen many phase III clinical trials fail against melanoma. It's a bad cancer to bet against and I won't start with Vical.

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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 27, 2012, at 1:46 PM, fatherknowsbest wrote:

    This is an article? If this is the bears best case They are in deep trouble. We could use a little more depth here. How about a risk reward summary. You know if the trial fails the stock will go to X and if it succeeds it will go to Y. Then maybe some odds on the chances of the trials Success/ Failure. This is Article is just an opinion, I would treat it as such.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2167081, ~/Articles/ArticleHandler.aspx, 10/25/2014 11:24:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement