Sunday, July 1, 2012

2-Star Stocks Poised to Plunge: Anthera Pharmaceuticals?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Anthera Pharmaceuticals (Nasdaq: ANTH  ) has received a distressing two-star ranking.

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

Anthera facts

Headquarters (Founded) Hayward, Calif. (2004)
Market Cap $286.8 million
Industry Biotechnology
Trailing-12-Month EBITDA ($77.6 million)
Management CEO Paul Truex
CFO Christopher Lowe
Trailing-12-Month Return on Capital (68.4%)
Cash/Debt $93.3 million / $24.1 million
Competitors Biogen Idec
GlaxoSmithKline
Human Genome Sciences

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

On CAPS, 18% of the 11 All-Star members who have rated Anthera believe the stock will underperform the S&P 500 going forward.

Just last week, one of those bears, zzlangerhans, touched on the stock's seemingly unsustainable valuation:

Anthera's share price is traveling at the upper end of recent range as the expected final interim efficacy analysis of the VISTA-16 phase III trial has failed to make its 2011 appearance. Of course, the analysis is only a little late which might just be due to administrative issues, but given the company's prior whitewash of results of the IMPACTS trial my expectations are somewhat dim.

What do you think about Anthera, 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!

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

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