Why Sinovac Is Poised to Keep Pulling Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Sinovac Biotech (NASDAQ: SVA  ) has received the dreaded one-star ranking.

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

Sinovac facts

Headquarters (founded)

Beijing, China (1999)

Market Cap

$205.0 million

Industry

Biotechnology

Trailing-12-Month Revenue

$48.6 million

Management

Chairman/CEO Wei dong Yin
CFO Danny Cheng

Return on Equity (average, past 3 years)

(8.5%)

Cash/Debt

$90.9 million / $34.5 million

Competitors

GlaxoSmithKline
Sanofi

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

On CAPS, 33% of the 66 All-Star members who have rated Sinovac believe the stock will underperform the S&P 500 going forward.

Earlier today, one of those Fools, zzlangerhans, succinctly summed up the bear case for our community:

Sinovac is now back in unsustainable territory due to the double whammy of a new bird flu epidemic and positive results for the EV71 vaccine for hand-foot-mouth disease. As always, the flu scare will resolve itself without any contribution from Sinovac or any long-term impact on their revenues. And EV71 is no doubt benefiting from public confusion over hand-foot-mouth disease, a benign illness of children that sounds a lot like hoof-and-mouth disease, an economically disastrous disease of cattle. Not every childhood viral illness requires a vaccine. I suspect that even though a few hundred children die of hand-foot-mouth out the million who contract it every year in China, the Chinese government won't see it as a public health issue pressing enough to require a new vaccination program. Eventually, Sinovac will have to live or die based on their hepatitis vaccine programs which of late have looked somewhat stagnant.

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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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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 August 08, 2013, at 11:09 AM, timt100 wrote:

    Glad I didn't follow this advice. Up almost 18% since the day after this article. Keep writing. May be a good long indicator.

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