Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

LipoScience Gives Its Shareholders Chest Pains

There's a good reason that I always include the warning that small-cap med-techs carry above average risks, and LipoScience (NASDAQ:LPDX) dutifully provided an example last week. Due in part to system placement delays and delays in ramping up new sales reps, this emerging diagnostics company missed expectations for the first quarter and lowered guidance for the rest of the year.

Retribution was swift and severe - the shares tanked 25% in a single day. Now the question for investors is whether there is still an opportunity here and where it's worth the risks to buy shares in the hopes of realizing that opportunity.

A Multi-Factor Miss In Q1

The first quarter wasn't a banner quarter for the diagnostics...

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