Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotech company Halozyme Therapeutics (Nasdaq: HALO) has received a distressing two-star ranking.

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

Halozyme facts

Headquarters (Founded)

San Diego, Calif. (1998)

Market Cap

$753.0 million



Trailing-12-Month Revenue

$13.7 million


CEO Dr. Jonathan Lim
Co-Founder/Chief Scientific Officer Gregory Frost

Return on Capital (Average, Past 3 Years)


1-Month Return



Allergan (NYSE: AGN)
ISTA Pharmaceuticals (Nasdaq: ISTA)
Sigma-Aldrich (Nasdaq: SIAL)

Strategic Partners

Baxter International (NYSE: BAX)
Roche Holding

Highly Rated Biotech Alternatives

Amgen (NYSE: AMGN)
Celgene (Nasdaq: CELG)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 17% of the 229 members who have rated Halozyme believe the stock will underperform the S&P 500 going forward. These bears include cashsage and All-Star zzlangerhans, who is ranked in the top 1% of our community.

Just two days ago, cashsage warned Fools that Halozyme "has a too high valuation compared to its sales potential." Our CAPS member continues: "It is also one of the most loss making companies at least until 2012. Its stock price may fall back to less than $2 as in 2005."

In a pitch from two weeks ago, zzlangerhans addressed Mr. Market's ever-increasing view of the stock as a tasty takeover target:

The most recent reason for [Halozyme's] outperformance is that partner Baxter bought ApaTech, a privately held British manufacturer of biologic products such as bone grafts. The operative word in that sentence is products. Baxter bought a company that makes products that it can sell. Baxter sells products. Claro? Baxter bought ApaTech but that does not mean that Baxter will buy every developmental biotech they have a collaboration with. [Halozyme] is going to have to continue developing its pipeline as an independent company and they will have to generate some meaningful results before anyone will take them to the prom.

What do you think about Halozyme, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.