Please ensure Javascript is enabled for purposes of website accessibility

Is Raptor Pharmaceuticals Ready to Roar?

By Brian D. Pacampara, CFA - Nov 16, 2012 at 9:54AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Raptor Pharmaceuticals (NASDAQ: RPTP) has earned a coveted five-star ranking.

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

Raptor facts

Headquarters

Novato, Calif.

Market Cap

$232.9 million

Industry

Biotechnology

Trailing-12-Month EBITDA

($36 million)

Management

Co-Founder/CEO Dr. Christopher Starr
CFO Georgia Erbez

Return on Capital (average, past 3 years)

(57.3%)

Cash/Debt

$43.1 million / $23.4 thousand

Competitors

AstraZeneca (AZN 1.93%)Endo Health Solutions (ENDP -6.82%)Pfizer (PFE 0.50%)

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

On CAPS, 96% of the 50 members who have rated Raptor believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, highlighted Raptor as a strictly short-term opportunity:

I'm a long-term skeptic on Raptor, but I believe the stock is due for a turn-around before the DR Cysteamine PDUFA for cystinosis on January 30. Will convenience and a reduction in side effects convince insurers to pay 10-20 times as much as they pay now for the current therapy? I doubt it, and I don't think traders buying into the PDUFA will stick around to find out. Far-fetched use of the same compound for Huntington's disease and NASH is still in pie-in-the-sky stage and won't provide much lift until late 2013. This is a quick ditch if I have a positive score going into the PDUFA.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, Raptor may not be your top choice.

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

AstraZeneca PLC Stock Quote
AstraZeneca PLC
AZN
$64.54 (1.93%) $1.22
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$50.65 (0.50%) $0.25
Endo International plc Stock Quote
Endo International plc
ENDP
$0.58 (-6.82%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
327%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.