Why Rigel Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, clinical-stage drug development company Rigel Pharmaceuticals (NASDAQ: RIGL  ) has earned a respected four-star ranking.

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

Rigel facts

Headquarters (founded)

South San Francisco, Calif. (1996)

Market Cap

$392.1 million

Industry

Biotechnology

Trailing-12-Month Revenue

$2.3 million

Management

Chairman/CEO James Gower
President/COO Raul Rodriguez

Return on Equity (average, past 3 years)

(17.6%)

Cash/Debt

$298.2 million / $0

Competitors

Amgen

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

On CAPS, 97% of the 891 members who have rated Rigel believe the stock will outperform the S&P 500 going forward.

Just this past Friday, one of those Fools, All-Star zzlangerhans, tapped Rigel as a particularly attractive bargain opportunity:

The street responded to news of mixed results of the OSKIRA-1 phase III trial of fostamatinib ... as though the trial was an unequivocal failure. In fact, the trial failed to show improvement over placebo in RA by radiographic criteria but did show stat sig improvement by clinical criteria. If this type of outcome holds through subsequent trials the company and partner AstraZeneca may submit an NDA on the basis that clinical improvement trumps radiographic improvement.

As of the end of 2012, Rigel has about [$300M] in liquid assets to support a market cap of [$392M] at [Friday's] close. That's a reasonable bet for a rebound, although my personal preference would have been to let the stock get beaten up further when OSKIRA-2 and OSKIRA-3 results are released later this quarter, and then hopefully mop up closer to cash.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its strong four-star rating, Rigel may not be your top choice.

We've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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