Why Coronado Biosciences Is Poised to Plunge

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Coronado Biosciences (NASDAQ: CNDO  ) has received a distressing two-star ranking.

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

Coronado facts

Headquarters (founded)

Burlington, Mass. (2006)

Market Cap

$295.6 million

Industry

Biotechnology

Trailing-12-Month EBITDA

(26.1%)

Management

Chairman/CEO Harlan Weisman
CFO Lucy Lu

Return on Capital (average, past 3 years)

(67.4%)

Cash/Debt

$40.2 million / $14.2 million

Competitors

Abbott Labs
Biogen Idec

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

On CAPS, 15% of the 20 members who have rated Coronado believe the stock will underperform the S&P 500 going forward.

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

Whipworm eggs to treat autoimmune disease might sound completely reasonable to some people, but I see it as farfetched to the border of insanity. If you wonder why high level executives and scientists would spend years pursuing a completely irrational scientific endeavor, my answer would be that I don't know but I see it happen all the time. The fact that Coronado management is confident does not make me confident. Pull out all the pretty epidemiologically colored world maps you want, I will snarf my corn flakes if I open up my watchlist one morning and find out this works. Topline results from the TRUST-1 phase II trial of the magic beans in ulcerative colitis are expected in the second half of 2013, so we don't have too long to wait.

While you can certainly make quick gains in speculative biotech stocks, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (3) | 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.

  • Report this Comment On April 15, 2013, at 2:43 PM, MassExecutions wrote:

    Well, this will be an easy call. My wife is going to get this treatment from a clinic in Mexico and if it works I hold the stock and if it doesn't I sell. All the research I've read about this sounds positive, although there hasn't been a double blind study yet. People in Canada and Mexico are already getting this treatment and it seems to be working, and the Univeristy of Iowa studies looked good.

  • Report this Comment On April 17, 2013, at 4:20 AM, Corsair3117 wrote:

    The Canadien results and what I can understand of the U of Iowa study do indeed look very good. Good luck and good health to your wife !

  • Report this Comment On April 22, 2013, at 4:53 PM, MassExecutions wrote:

    Thanks! I'll post back with results.

Add your comment.

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: 2363329, ~/Articles/ArticleHandler.aspx, 10/25/2014 4:00:14 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