Why Pluristem Therapeutics 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, biotechnology company Pluristem Therapeutics (NASDAQ: PSTI  ) has received the dreaded one-star ranking.

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

Pluristem facts

Headquarters (founded)

Haifa, Israel (2001)

Market Cap

$198.6 million

Industry

Biotechnology

Trailing-12-Month Revenue

$757 thousand

Management

Chairman/CEO Zami Aberman
CFO Yaky Yanay

Return on Equity (average, past 3 years)

(73%)

Cash/Debt

$68.3 million / $0

Competitors

Aastrom Biosciences
Advanced Cell Technology
Osiris Therapeutics

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

On CAPS, 81% of the 15 All-Star members who have rated Pluristem believe the stock will underperform the S&P 500 going forward.

One of those Fools, biotech expert zzlangerhans, tapped yesterday's 7% stock price spike as particularly unsustainable:

Wow, Pluristem received approval in Germany! Approval to run a phase II trial there, that is. Pluristem CEO seems to be aware that issuing any PR with the word "approval" somewhere in it is good for a momentary 10% spike in share price. Someone should do a study to determine the correlation between these types of announcements and the lockup expiration dates for their dilutive financings.

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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 January 16, 2013, at 12:26 PM, SuzaAdam wrote:

    It seems to me you are running a Vandetta against this company. Your analyisis is shallow and stupid.

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