Please ensure Javascript is enabled for purposes of website accessibility

Why Coronado Biosciences Is Poised to Plunge

By Brian D. Pacampara, CFA - Apr 15, 2013 at 11:49AM

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-lagging returns could be written in this 2-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Coronado Biosciences (FBIO -3.39%) has received a distressing two-star ranking.

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

Coronado facts

Headquarters (founded)

Burlington, Mass. (2006)

Market Cap

$295.6 million

Industry

Biotechnology

Trailing-12-Month EBITDA

(26.1%)

Management

Chairman/CEO Harlan Weisman
CFO Lucy Lu

Return on Capital (average, past 3 years)

(67.4%)

Cash/Debt

$40.2 million / $14.2 million

Competitors

Abbott Labs
Biogen Idec

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

On CAPS, 15% of the 20 members who have rated Coronado believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, succinctly summed up the Coronado bear case for our community:

Whipworm eggs to treat autoimmune disease might sound completely reasonable to some people, but I see it as farfetched to the border of insanity. If you wonder why high level executives and scientists would spend years pursuing a completely irrational scientific endeavor, my answer would be that I don't know but I see it happen all the time. The fact that Coronado management is confident does not make me confident. Pull out all the pretty epidemiologically colored world maps you want, I will snarf my corn flakes if I open up my watchlist one morning and find out this works. Topline results from the TRUST-1 phase II trial of the magic beans in ulcerative colitis are expected in the second half of 2013, so we don't have too long to wait.

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

Fortress Biotech, Inc. Stock Quote
Fortress Biotech, Inc.
FBIO
$0.89 (-3.39%) $0.03
Abbott Laboratories Stock Quote
Abbott Laboratories
ABT
$113.24 (0.71%) $0.80
Biogen Inc. Stock Quote
Biogen Inc.
BIIB
$199.65 (3.40%) $6.56

*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
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

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.