2-Star Stocks Poised to Plunge: Alnylam Pharmaceuticals?

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

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

Alnylam facts

Headquarters (founded) Cambridge, Mass. (2002)
Market Cap $599.5 million
Industry Biotechnology
Trailing-12-Month Revenue $82.5 million
Management Founder/Chairman John Clarke
CEO Dr. John Maraganore
Return on Equity (average, past 3 years) (29.6%)
Cash/Debt $199.1 million / $0
Competitors Merck
Pfizer
Valeant Pharmaceuticals

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

On CAPS, 9% of the 309 members who have rated Alnylam believe the stock will underperform the S&P 500 going forward.

A couple of weeks ago, one of those Fools, All-Star zzlangerhans, nicely summed up the bear case for our community:

The near-term hopes of Alnylam (and RNA interference in general) to be taken seriously as part of the future [armamentarium] against infectious disease were dealt a severe blow ... when the company reported failure of ALN-RSV01 to significantly reduce the incidence of bronchiolitis in RSV-infected patients in a phase IIb trial. ... I believe this development will drain market cap from the company as institutional investors edge quietly towards the exits. If this was an early proof-of-concept trial, the "near-miss" angle might hold water but it doesn't really make the grade for a phase IIb study. ...

I've profited before from volatility in Alnylam, but that was at a lower price entry point with more cash in the coffers. This time round, I'm seeing a lot more tunnel before any light appears.

If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another small-cap growth play with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

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

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Pfizer. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (0) | Recommend This Article (5)

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.

Be the first one to comment on this article.

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: 1911323, ~/Articles/ArticleHandler.aspx, 12/18/2014 3:43:31 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