3 Biotech Stocks With Falling Inventory Turnover Ratios

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All of the Biotech companies mentioned below have have reported falling inventory turnover ratios.

Average Weekly Returns:

Average 1-Week Return of All Stocks Mentioned Below: -1.22%

Average 1-Month Return of All Stocks Mentioned Below: 8.23%

Analysis of List Alpha:

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Week): 1 out of 3 (33.33%)

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Month): 2 out of 3 (66.67%)

Chart: Distribution of 1-Week Returns For All Stocks Mentioned Below

Chart: Distribution of 1-Month Returns For All Stocks Mentioned Below

1. Albany Molecular Research Inc. (AMRI): Provides contract services to various pharmaceutical and biotechnology companies primarily in the United States, Europe, and Asia. Size of inventory grew by 31.90% during the most recent quarter ($33.16M vs. $25.14M y/y), while revenue only increased by 11.03% ($55.77M vs. $50.23M y/y). Inventory, as a percentage of current assets, increased from 22.18% to 30.88% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

2. Gilead Sciences Inc. (GILD): Engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Size of inventory grew by 20.90% during the most recent quarter ($1,617.37M vs. $1,337.75M y/y), while revenue only increased by 14.37% ($2,426.6M vs. $2,121.66M y/y). Inventory, as a percentage of current assets, increased from 21.76% to 27.5% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

3. CEL-SCI Corp. (CVM): Engages in the research and development of drugs and vaccines. Size of inventory grew by -13.29% during the most recent quarter ($1.37M vs. $1.58M y/y), while revenue only increased by -50.0% ($0.04M vs. $0.08M y/y). Inventory, as a percentage of current assets, increased from 10.15% to 12.4% during the most recent quarter (time interval comparison 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

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