Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Cadence Pharmaceuticals (Nasdaq: CADX ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Cadence's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||San Diego (2004)|
|Market Cap||$367.0 million|
|Trailing-12-Month Revenue||$24.4 million|
|Management||Co-Founder/CEO Theodore Schroeder
CFO William LaRue
|Return on Equity (average, past 3 years)||(76.4%)|
|Cash/Debt||$108.6 million / $28.8 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 37% of the 98 members who have rated Cadence believe the stock will underperform the S&P 500 going forward.
Cadence has gapped down on earnings the last three quarters and I don't see that as likely to change on August 2. Ofirmev revenues have been increasing moderately behind a furious marketing drive but are still a long way from matching SGA expenses and quarterly burn. With the share price up 50% from recent lows as the summer tide lifts the biopharma sector, look to Cadence to be at the forefront of the wave back downward.
If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Cadence, with its one-star rating, may not fit the bill for your portfolio.
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