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Editor's notes: Steady disappointment since the IPO has crushed Liposcience shares. Product relevancy and new leadership makes a turnaround possible, and the downside appears very limited.

Of the approximately $50 billion in IPOs this year, LipoScience (LPDX) is indisputably one of the most disappointing and underperforming. After being priced at $9 in January of this year, the shares quickly rose to $11 and have since fallen nearly 70%.

Every quarter this year has brought on more disappointment. While the company's operating expenses will increase nearly 25% in 2013 over the prior year, sales are expected to decline approximately 5%. Also, average selling price for the test has declined for three consecutive years. So what reason could I have to recommend investors purchase shares of this diagnostic company?

Background

LipoScience is a diagnostic company that develops and markets tests to identify the presence of cardiac...

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