Jul. 26, 2025 11:16 AM ETAlector, Inc. (ALEC) StockALECOut of Ignorance7.4K FollowersAlector's stock has plummeted 71% since my last 'hold' rating, raising questions about whether it's now a bargain or a value trap.I revisit Alector after its significant decline, analyzing recent financials and corporate updates to reassess its investment potential.Key sources include its latest 10-K, its Q1 2025 10-Q, and its latest corporate presentation.My focus is to determine if Alector's current valuation justifies a buy or if risks and a lack of catalysts still outweigh potential rewards.SolStock/E+ via Getty ImagesThis is my third Alector (ALEC) article, following 07/2024's "Alector: Brain Science Play With High Expenses And Few Catalysts". In Few Catalysts, I rated Alector a hold. It was trading at $5.55 at the time. It has since dropped ~70%. Ouch.This article was written byOut of Ignorance7.4K FollowersWriting under the pseudonym "out of ignorance", I very much regard investing as a learning process. Investing failures are tuition paid. Investing successes enter the trove of lessons learned. In my Seeking Alpha articles I share my experience from decades of investing and from ~5 years of focused research on a variety of stocks, in recent years with a primary emphasis on healthcare stocks. I greatly appreciate those who take the time to share their reactions to articles, particularly those who share relevant anecdotes and experiences.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments