1 Pharma Stock to Avoid at All Costs
At first glance, Vanda Pharmaceuticals (NASDAQ: VNDA) appears to be an ideal stock for value investors. The company has a massive cash balance with no debt, its revenue and earnings are growing rapidly, and it has ample clinical programs in its pipeline. So investors may be puzzled as to why the stock is trading at a mere six times earnings. Isn't Vanda's stock a textbook definition of a great deal that everyone should be on the lookout for?
Well, if something is too good to be true, then it probably is. As it turns out, there's a solid bearish argument that is scaring investors away from the stock. The argument goes something like this:
Is there any validity to these claims? Let's dig deeper and find out.
Source Fool.com
