Exelixis (EXEL) reported $0.05 a share in earnings on revenue growth of 424%, yet the stock continues to slump. After the ER on May 1, markets soured on the stock. For no good reason, either, since the company beat expectations. If a first line treatment gets approved, EXEL stock could more than double. $EXEL, Exelixis, Inc. / D Risk: Share dilution is a concern for shareholders. The share count jumped to 310 million in Q1. This implies a 1x price/sales (on revenue of $350M in 2017). The ratio falls if EXEL generates over $500 million in revenue next year (2018) whilst share issuance slows. Operating costs are under control at $290 - $310 million. Takeaway Biotech stocks are out of favor, no matter how good the news the companies share. Speculators should also watch Exact Sciences (EXAS), whose prescreening orders are soaring. Synergy Pharmaceuticals (SGYP) is in the midst of launching Trulance. Array Biopharma (ARRY) reported a loss in its third quarter on May 10 yet the stock bounced back.