Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Neptune Technologies & Bioresources (Nasdaq: NEPT ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Neptune's business and see what CAPS investors are saying about the stock right now.
||Laval, Canada (1925)
||CEO Henri Harland (since 1998)
CFO Andre Godin (since 2003)
|Return on Equity (average, past 3 years)
||$12.8 million / $6.0 million
||AMS Health Solutions
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 85% of the 171 members who have rated Neptune believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those bears, All-Star TSIF, touched on Neptune's seemingly unsustainable valuation:
Yes, I see growth potential if Krill hits the nutrition market, but too much growth is already factored in. I've gotten burned by some of these wanna be vitamin, save the world, cure the common cold plays in the past before reality settles in. ...
There are getting to be too many shares outstanding and the scales will eventually tip.
Market cap $229 Million on a company with negative cash flow and a $0.55 book value. Made it to the Nasdaq which also caused me to hold my thumb, but NO institutional investors to soak up shares. ...
Overvalued even if one accepts the medical benefits. Needs to get cash flow positive and make up some book value ground to merit market cap OR market cap needs to come back down.
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here 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 TrackPoisedTo CAPS account.