Why BioTime Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company BioTime (NYSEMKT: BTX  ) has received the dreaded one-star ranking.

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

BioTime facts

Headquarters (founded)

Alameda, Calif. (1990)

Market Cap

$234 million

Industry

Biotechnology

Trailing-12-Month Revenue

$4.3 million

Management

CEO Dr. Michael West (since 2007)
CFO Peter Garcia (since 2011)

Return on Equity (average, past 3 years)

(44.5%)

Cash/Debt

$7.8 million / $0

Competitors

B. Braun Melsungen
Baxter International
Hospira

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

On CAPS, 43% of the 90 members who have rated BioTime believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our community:

BioTime is one of those companies whose valuation just leaves me scratching my head. Their business model seems to be based on continuously adding new developmental programs and leaving their other pipeline projects in limbo to be brought out and dusted off whenever convenient. I just went through their last earnings PR and I can't elucidate any concrete progress in clinical trials. It seems like all the highlights relate to agreements, collaborations and publications but there's nothing to suggest any progression toward a marketable drug or device. It looks like they're planning to fall back on ATM's to keep them solvent for now, meaning the market cap will be ballooning as the share count quietly increases. The street seems to have bought their hype regarding Geron's old stem cell pipeline for now, but I'm sure there's a good reason Geron wanted to get rid of it.

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