Thursday, July 26, 2007

Curis Inc.

Curis Inc. is a NASDAQ listed security that has been trading in a range between $0.91 and $2.35 over the past year. With 49,381,520 shares outstanding, a recent price of $1.26 gives a total market capitalization of $63,702,159. While there are certainly larger companies, Curis Inc. has definitely earned its place in the pack. Last year, Curis Inc. created $-0.17 in earnings for every share outstanding.

Curis Inc. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Curis Inc. is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.

1 comments:

Anonymous said...

The attraction is that some of the Curis drugs inhibit the hedgehog pathway. Hedgehog inhibitors, like cyclopamine, have done amazing things in preclinical studies. They have in fact CURED the gold standard animal models of several human cancers. It is a red hot area of research. The world now awaits the results of human trials. The basic scientists have done all they can do. Now it is up to the clinicians.
Hence the speculation and gamble that they may have blockbuster drugs in their pipeline.