Why Sunesis 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, biopharmaceutical company Sunesis Pharmaceuticals (NASDAQ: SNSS  ) has received the dreaded one-star ranking.

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

Sunesis facts

Headquarters (founded)

South San Francisco, Calif. (1998)

Market Cap

$319.3 million

Industry

Biotechnology

Trailing-12-Month Revenue

$1.8 million

Management

CEO Daniel Swisher Jr. (since 2004)
CFO Eric Bjerkholt (since 2004)

Return on Equity (average, past 3 years)

(53.5%)

Cash/Debt

$76.6 million / $24.0 million

Competitors

AstraZeneca
Corden Pharma Switzerland LLC
Pfizer

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

On CAPS, 41% of the 32 All-Star members who have rated Sunesis 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:

The Sunesis seems to be rising again but it looks to me like a rising tide phenomenon. As I've said before, the requirement to increase enrollment after the interim analysis last September was the second worst possible outcome. VALOR is unlikely to return a positive result and there is absolutely no reason for the share price to be rising more than a year ahead of topline data. It seems the lessons of Celsion haven't been learned.

A flop, or a future blockbuster?
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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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