Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug developer Avanir Pharmaceuticals
With that in mind, let's take a closer look at Avanir's business and see what CAPS investors are saying about the stock right now.
Avanir facts
| Headquarters (founded) | Aliso Viejo, Calif. (1988) |
| Market Cap | $537.3 million |
| Industry | Pharmaceuticals |
| Trailing-12-Month Revenue | $24.5 million |
| Management | CEO Keith Katkin Principal Financial Officer Christine Ocampo |
| Return on Equity (average, past 3 years) | (106.8%) |
| Cash/Debt | $66.7 million / $0 |
| Competitors |
Bristol-Myers Squibb Eli Lilly GlaxoSmithKline |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 24% of the 256 members who have rated Avanir believe the stock will underperform the S&P 500 going forward.
Just last week, one of those bears, All-Star BlacknGold, touched on the stock's seemingly unsustainable price run:
This came up in a screen for stocks with the highest gains in the last 4 weeks. With a fair [book value per share] of $0.44 this company is greatly overvalued. Cash is shrinking every quarter along with shareholders' equity, which stands at only $60 million as of 1Q12. Should be an easy red-thumb target.
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