3 horrendous healthcare stocks this week 4-11-14
10
3 Horrendous Health-Care Stocks This Week
-
Upload
the-motley-fool -
Category
Healthcare
-
view
3.679 -
download
2
description
This week's worst healthcare stocks
Transcript of 3 horrendous healthcare stocks this week 4-11-14
3 Horrendous Health-Care Stocks This Week
It’s been a horrible week for many health-care stocks. A few, though, had particularly bad rides. Here are the week’s most horrendous health-care stocks of all.
123
The biotech’s shares plunged over 28% for the week.
Puma Biotechnology (NYSE: PBYI)
Source: Yahoo! Finance
• Puma announced results from a mid-stage study of neratinib in treating breast cancer.
• The results disappointed investors because the benefits weren’t as positive as hoped.
• 39% of patients developed moderate to severe diarrhea, prompting Puma to add higher doses of an anti-diarrheal drug to other studies of neratinib.
Why Puma’s shares got pummeled
Shares of the biopharmaceutical company focusing on pet medications dropped nearly 23% this week.
Kindred Biosciences (NasdaqOTH: KIN)
Source: Yahoo! Finance
• Kindred announced a secondary offering of 3.45 million shares at $18 on Tuesday with little effect on the stock price.
• The company presented at the Needham conference on Wednesday – again with shares not moving much.
• Thursday saw a huge drop with the big overall biotech plunge.
• The stock continued a steady sell-off that started over three weeks ago.
Why Kindred shares crashed
The stock of the cloud-based healthcare technology company fell nearly 21% this week.
Castlight Health (NYSE: CSLT)
Source: Yahoo! Finance
• After a big IPO pop in March, Castlight has felt the sting of critics in recent weeks.
• Castlight is the “most overpriced IPO of the century,” according to Yahoo! Finance.
• The overall pullback in technology stocks seems to be sweeping Castlight in its path, but at an even faster rate of decline -- probably because of those perceptions that the stock is priced too highly.
Why Castlight dimmed
• Any of this week’s horrendous stocks could rebound, but Puma Biotechnology gets the nod as most likely to bounce back.
• The market reaction to Puma’s neratinib results seems somewhat overdone -- there’s still a good chance that the drug will perform well in phase 3 studies.
• As investors digest the latest results more (and the general biotech sell-off ultimately wanes), Puma could mount a comeback.
Best shot at bouncing back?
?
Find out which stock The Motley Fool’s chief investment officer selected as the top pick for
2014 in our free report!
