Maxygen Inc (NASDAQ:MAXY.DL)

CAPS Rating: No stars

A biotechnology company committed to the discovery and development of improved next-generation protein pharmaceuticals for the treatment of disease and serious medical conditions.


Player Avatar MrOneHundred (30.64) Submitted: 1/26/2013 12:17:28 AM : Outperform Start Price: $2.44 MAXY.DL Score: -5.77

This is absolutely not the safest pick I've made. I've been following the biotech and pharmaceutical sectors for awhile now with fake money on a different website and have noticed certain trends. While this company is at an all time low, presently, it will probably drive lower before it ever goes up again. I'm expecting enough faith from investors to buy into this money-wasting, trash stock in the eventuality that something news-breaking happens. I'm willing to risk this with a little bit of real money and caps points, but this is not a avenue of growth I'd recommend to anyone. This is a test for me. Based on this stock's trend, I could potentially lose some major points here if the stock decides to drop another large amount in share price.

P/E: 3.25 (Motley Fool)
EPS 0.74 (Google Finance)

Asset turnover: 0.20 Industrial average 0.40
ROA - 5yr average: 7.90 Industrial average 4.40
ROE - 5yr average: 8.80 Industrial average 6.00 (Motley Fool)

PEG ratio: 3.30/-32.74 = -0.10

These figures don't tell the whole story of this company. In fact, when it comes to these micro-cap bio-sectors, the quantitative measures of a stock begin to mean very little compared to the qualitative measures (i.e. articles) IMO. These ratios never the less show how risky this stock is. Not a wise long term investment and a very risky short term one!

Word to the wise, I'm not a trained practitioner of medicine, so everything stated here is merely my opinion, nothing more!

The San Mateo, California, based company so far has done very little to produce new drugs in recent time frames, but still retains ownership of the drug MAXY-G34. MAXY-G34 is a pegylated granulocyte-colony stimulating factor (or G-CSF); essentially it's an otherwise naturally-occurring protein that causes one's bone marrow to produce neutrophils (a special type of leukocyte that aids in the body's autoimmune system).

In the past, at around July 2, 2008, Maxygen managed to sell one of its drugs, MAXY-VII, to Bayer for a grand total of 30 million dollars. There was a subsequent, share increase and then a near 50% plummet on December 17, 2010 after $1.00 (app. %15) dividends were paid out December 15.

For this pick, I'm anticipating the eventual selling of MAXY-G34. I'll watch the news and try to buy with any rumors of purchase.

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