Why VIVUS Is Poised to 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 VIVUS (NASDAQ: VVUS  ) has received a distressing two-star ranking.

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

VIVUS facts

Headquarters (founded)

Mountain View, Calif. (1991)

Market Cap

$1.1 billion

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$2.0 million

Management

CEO Leland Wilson (since 1991)
CFO Timothy Morris (since 2004)

Return on Equity (average, past 3 years)

(52.8%)

Cash/Debt

$214.6 million / $0

Competitors

Eli Lilly
GlaxoSmithKline
Pfizer

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

On CAPS, 16% of the 428 members who have rated VIVUS believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, chrispycrunch, cautioned our community about getting too excited over VIVUS' new obesity drug Qsymia:

This is not the company to own. The insiders have been selling. The drug itself has risks, which will turn off many potential subjects even if deemed safe for them to own. There are drug alternatives coming to market (ie [Arena Pharmaceuticals]) which will hurt [VIVUS]. Beware. [VIVUS] also cut prices, because the free trial did not boost sales.

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Read/Post Comments (5) | 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 March 07, 2013, at 12:00 PM, RSRdriver wrote:

    Vivus up almost 5% since this came out and another REAL upgrade!

    If your looking to short something, try ARNA. It's a sure thing!

  • Report this Comment On March 07, 2013, at 12:44 PM, CorruptedSoul wrote:

    VVUS' pumper is stupid. The only reason VVUS is up is because institutions want to get out (therefore they pumped). See pattern from the prior earning release (09/30/12), same thing happened. VVUS couldn't sell crap, PPS tanked to below $10, Analysts pumped VVUS right afterward with "overweight" rating....VVUS couldn't sell with freebies, how can they sell now, even if price is reduced. Wash, rinse, spin, repeat.

  • Report this Comment On March 07, 2013, at 1:20 PM, feelinIrie wrote:

    Still no response from Driver as to why Vvus Can't sell the product in brick-and-mortar stores, Or why it is black box labeled.

    VVUS Is the best stock to short there is.

  • Report this Comment On March 07, 2013, at 1:22 PM, feelinIrie wrote:

    The insiders at VIvius we're selling immediately after the jump to $30 pps last summer. You do not see that from the insiders at Arena pharmaceuticals.

    That says it all!

  • Report this Comment On March 07, 2013, at 4:10 PM, SamFreedom wrote:

    Lol RSRDIVER is at it again!

    How can any person get it so backwards? I haven't seen someone been this wrong since the German generals during ww2!

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