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Is It Time To Buy Bellicum Pharmaceuticals Inc (BLCM)?

Bellicum Pharmaceuticals Inc (NASDAQ:BLCM), a biotechnology company based in United States, received a lot of attention from a substantial price increase on the NasdaqGM in the over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine BLCM’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for Bellicum Pharmaceuticals

What’s the opportunity in BLCM?

According to my relative valuation model, BLCM seems to be currently fairly priced. I’ve used the price-to-book ratio in this instance because there’s not enough visibility to forecast its cash flows, and its earnings doesn’t seem to reflect its true value. The stock’s ratio of 2.7x is currently trading slightly below its industry peers’ ratio of 3.7x, which means if you buy BLCM today, you’d be paying a relatively reasonable price for it. And if you believe that BLCM should be trading at this level in the long run, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because BLCM’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, BLCM’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will BLCM generate?

NasdaqGM:BLCM Future Profit Nov 8th 17
NasdaqGM:BLCM Future Profit Nov 8th 17

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at BLCM future expectations. However, with a negative profit growth of -10.50% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for BLCM. This certainty tips the risk-return scale towards higher risk.

What this means for you:

Are you a shareholder? BLCM seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on BLCM, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on BLCM for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on BLCM should the price fluctuate below its true value.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Bellicum Pharmaceuticals. You can find everything you need to know about BLCM in the latest infographic research report. If you are no longer interested in Bellicum Pharmaceuticals, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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