Why Spectrum Pharma 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, biotechnology company Spectrum Pharmaceuticals (NASDAQ: SPPI  ) has earned a respected four-star ranking.

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

Spectrum facts

Headquarters (founded)

Henderson, Nev. (1987)

Market Cap

$475.9 million

Industry

Biotechnology

Trailing-12-Month Revenue

$211 million

Management

Chairman/CEO Dr. Rajesh Shrotriya
CFO Kurt Gustafson

Return on Equity (average, past 3 years)

26%

Cash/Debt

$124.4 million / $50.0 million

Competitors

Biogen Idec
Teva Pharmaceutical

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

Earlier today, CAPS All-Star zzlangerhans succinctly summed up the Spectrum bull case for our community:

Since the big plunge in March, the stock has traded between 7 and 9 as the street apparently awaits a revenue trend. The latest quarterly numbers weren't much of a help, as Zevalin declined while Fusilev and Folotyn ticked up. I'm unenthusiastic about the Marqibo acquisition and the company was very vague about the prospects for apaziquone in the last CC. Probably the brightest light on the horizon is belinostat, although it seems that the prior goal of a late summer NDA submission won't be happening. In short, I'm not expecting great things from this outperform but I see it as a low risk move as the share price dips to the lower end of recent range.

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