SRNE - Is Sorrento Therapeutics a Ticking Time Bomb for Investors?
Sorrento Therapeutics (NASDAQ: SRNE) is one of this year's rollercoaster stocks, riding the market crash and the coronavirus product hype train to grow by more than 450% before collapsing to its present level, 130% above its price on Jan. 1. Sorrento's stock is extremely headline-driven, making it risky to hold. But underneath its swinging price, there lies a biotech company working on promising and in-demand medicines that could address some of most serious health problems posed by the COVID-19 pandemic.
As many investors have identified, Sorrento's pipeline could be filled with treasures, and its stock has managed to grow despite occasional harsh falls. On the other hand, the company's financials are in terrible condition -- it may be at risk for bankruptcy sometime in the next couple of years. So is Sorrento a high-risk, high-reward stock for investors with nerves of steel, or is it a ticking time bomb that could detonate at any time? There's a solid case for both of these perspectives.
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Is Sorrento Therapeutics a Ticking Time Bomb for Investors?