Why Sangamo Biosciences Shares Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of clinical-stage biopharmaceutical company Sangamo Biosciences (NASDAQ: SGMO  ) plunged 14% today after its full-year outlook disappointed Wall Street.

So what: Sangamo's fourth-quarter results managed top estimates -- EPS loss of just $0.07 versus the consensus loss of $0.12 -- but downbeat revenue guidance for 2013 is triggering concerns over slowing growth going forward. Of course, the stock has been on fire of late, up roughly 80% over just the past three months, so a pullback shouldn't come as too big of a surprise.

Now what: Management now sees full-year 2013 revenue of $20 million-$24 million, versus the consensus of $23.1 million.

"[W]e are looking forward to an exciting year of progress in what feels like a promising climate for Sangamo," said founder and CEO Edward Lanphier in a conference call, "with a strong interest from Big Pharma patients and investors and potentially curative approaches to genetic and rare diseases."

So while Sangamo remains just too volatile and risky for average Fools, today's double-digit drop might be providing an attractive opportunity for biotech-savvy traders.

Interested in more info Sangamo? Add it to your watchlist.


Read/Post Comments (0) | Recommend This Article (1)

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.

Be the first one to comment on this article.

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: 2242855, ~/Articles/ArticleHandler.aspx, 11/25/2014 9:02:45 PM

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