Exelixis, Inc. (NASDAQ:EXEL)

CAPS Rating: 4 out of 5

A development-stage biotechnology company dedicated to the discovery and development of novel small molecule therapeutics for the treatment of cancer and other serious diseases.

Recs

5
Player Avatar ptaussig (48.48) Submitted: 7/9/2010 4:42:28 AM : Underperform Start Price: $3.64 EXEL Score: +24.59

I suppose a market cap under $400mm is an alleged bargain with the presumed diversified R&D pipeline that EXEL has, but ...1 - It has ripped through more than $100mm cash the past two quarters and net cash was about $86mm, or less than $1.00/sh at 3-31-10.2 - MF generally indulges in recommending companies coining cash. EXEL is years away from that. Share dilution is likely to be huge over the next 2-3 years unless major milestone payments are likely.3 - Tax-loss selling in this one will likely be rampant by both institutions into end of October and retail into year end.4 - Two big institutions are (maybe were) at least 9% holders. If either are sellers, it's going to be under continued selling pressure.It wouldn't surprise me if EXEL was selling near its 11/08 lows near $2 some time over the next 6 months.

Member Avatar bobby1083 (< 20) Submitted: 9/6/2010 3:22:34 PM
Recs: 0

doubt it buddy, things are on the up and up.

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