Stocks only a short could love
The highest price-to-sales ratio in the group belongs to Pharmasset Inc., a pharmaceutical company. Its main focus is developing drugs to treat HIV and hepatitis C. In its last fiscal year, Pharmasset's revenue was about $1 million, yet the market awards it a $1.8 billion valuation. It has issued stock six times since early 2007. If investors ever lose their appetite for the company's shares, I figure Pharmasset will burn through its $127 million cash hoard in two or three years.