Why BioTime Is Poised to Underperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company BioTime (NYSEMKT: BTX  ) has received the dreaded one-star ranking.

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

BioTime facts

 

 

Headquarters (founded)

Alameda, Calif. (1990)

Market Cap

$249.6 million

Industry

Biotechnology

Trailing-12-Month Revenue

$3.9 million

Management

CEO Dr. Michael West (since 2007)

CFO Peter Garcia (since 2011)

Return on Capital (average, past 3 years)

(59.1%)

Cash/Debt

$9.9 million/$0

Competitors

B. Braun Melsungen

Baxter International 

Hospira 

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

On CAPS, 45% of the 96 members who have rated BioTime believe the stock will underperform the S&P 500 going forward.

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

BioTime is going nowhere fast, but the [S]treet apparently isn't seeing it as the stock is up more than 30% from recent lows over the last month despite an absence of catalysts. The company's only 2013 achievement is the purchase of Geron's cast-off stem cell platform, which serves only as another distraction from the company's dismal revenues, pathetically low cash reserves, and ominously large quarterly burn. Prior distraction Renevia can't seem to generate enough interest in Europe to set them on a path to a CE Mark. That's kind of like being refused the smiley face on your first grade animal picture quiz. And recent distraction PanC-Dx didn't even merit a mention in the most recent PR.

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.


Read/Post Comments (2) | 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 June 03, 2013, at 5:41 PM, bzliteyear wrote:

    this article was poorly written and sounds like yet another puppet for the shorts under the motley fool umbrella. there's about 7M dummy shorts on this stock and they're about to be run over. yes, 7M shares for a stock that trades 150k shares/day...guess who's about to get run over. yes, last one to cover is a....

    p.s. the CFO is not Garcia...and there's more good news coming. so, consider yourself warned - don't be a dummy.

  • Report this Comment On June 03, 2013, at 6:17 PM, lucyskid wrote:

    BTX might stand for (B)et (T)he (X)unknown against the sure short setup that the most recent and every other small funding package will deliver Those who berate BTX and West are the realists, but without the dreamers where would the country and science be? Buy a lottery ticket or go panning the elusive slough. You pays your money and plays the game, and those who feel compelled out of ego or insecurity or both to put that down never had an original idea in their lives.

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: 2469040, ~/Articles/ArticleHandler.aspx, 12/22/2014 8:43:04 AM

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