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Rod Raynovich
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Rod Raynovich is an entrepreneur and executive with a focus on life science companies and medical technology trends.He has over 30 years executive experience including Abbott and JNJ and has been involved three successful start-ups. He has a B.S, from Penn State University and an MBA from... More
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Raygent Capital
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  • Life Science Stocks Boosted By Genomic Technologies And New Diagnostic Products  0 comments
    Nov 14, 2013 12:46 PM | about stocks: CSII, ALR, ILMN, TMO

    Rayno Diagnostics and Tools Focus Stocks: 2013 Performance YTD

    A diversified life science portfolio must include clinical diagnostics and tools stocks because the synergies between therapy and diagnostics have never been stronger. Breakthroughs in molecular diagnostics for personalized medicine, genetic testing and infectious diseases are driving new product cycles for timely, more cost effective therapies. Sequencing tools from companies like Illumina (NASDAQ:ILMN) and Life Technologies (NASDAQ:LIFE) are entering an explosive growth phase leading the way for new clinical applications in a new age of molecular medicine.

    In addition to the genomics breakthroughs and new product trends there is always an M&A possibility with these stocks. Look at our previous picks with five buyouts.

    Top Winners YTD

    Cardiovascular Systems, Inc. (NASDAQ:CSII) up 135%. Revenues growing 28%-interventional treatments for vascular disease.

    Alere, Inc. (NYSE:ALR) Up 81% . Turnaround value play still trading at 1X sales in rapid diagnostics and solutions.

    Illumina, Inc. (ILMN) Up 73.6%. Momentum play beats top and bottom line. Company in arrays and sequencing.

    ThermoFisher Scientific (NYSE:TMO) Up 53%. Leading growth Company in tools, diagnostics and services.Busy with M&A.

    Quidel Corp (NASDAQ:QDEL) Up 31.5% small cap growth in rapid diagnostics solutions.

    Top Losers YTD

    Sequenom, Inc.(NASDAQ:SQNM) Down 51% volatile stock in genetic analysis, patent issues with prenatal testing platform.

    Response Genetics, Inc. (NASDAQ:RGDX) Down 10% on disappointing sales growth with oncology tests.

    Abaxis, Inc. (NASDAQ:ABAX) Down 5% on disappointing earnings and sales.

    Look at laggards Hologic (NASDAQ:HOLX) and Qiagen (NASDAQ:QGEN) for new buys.They are both mid-cap companies with growth potential.

    New Long Ideas

    We are giving you a "heads-up" on four new trading ideas. We know all of these companies but need to do a little more work on entry price, financials and technicals. These stocks can be volatile and some have already run up. Each of these companies has unique strengths. We will provide a sketch of each Company and rationale for investment: Luminex (LMNX $19), Meridian Bioscience (VIVO $25.5), Nanosphere (NSPH $2.15) and NanoString (NSTG $11.3).

    Luminex and Meridian are small cap value ; Nanosphere is a turnaround; Nanostring is a recent IPO and early stage growth.

     

     

    2010-2013   Original Price Price % Price Price % RET Price %RET Price %RET  
    DX and Tools Recomm   Dec'10 Ret 10/2/12 1/2/13 1 yr Jy1 YTD 12-Nov YTD  
                               
    Abaxis ABAX 2/2/09 15 26.9 79 37.9 37.8 36.7 48.36 30.4 35.45 -4.5  
    CardioV.Sys. CSII 11/5/10 7.15 11.7 63 11.45 13 29.7 21.29 69.6 29.5 135  
    Celera CRA 3/28/10 7 6.3 18 acquired            
    Cepheid CPHD 10/23/12 31.4       35.5 13 34.72 2.54 41.97 24  
    Exact Sci EXAS 12/10/10 5.6 5.98 6.8 11.36 11 36 14.44 36.4 11.52 8.78  
    GenomicH GHDX 2/26/13 28.5 NEW     27.24 6.3 32.85 20.6 34.45 26.5  
    GenProbe GPRO 2/2/09 45 58.4 30 82.55 acquired          
    Hologic HOLX 4/9/13 21.6 NEW     20   19.57 -2.2 20.51 2.5  
    Illumina ILMN 2/2/09 29 63.3 118 51.2 55.4 81.8 76.27 37.2 96.52 73.6  
    Immucor BLUD 4/5/10 20 19.8 0 acquired            
    Alere ALR 2/2/09 25 36.6 46 19.64 19 -18 25.05 35.4 33.57 81.5  
    MicroFluidics MFLU 7/6/10 0.77 1.34 74 acquired            
    NeoGen NEOG 7/2/10 26 41 58 42.8 45.6 48.8 56.41 24.5 46.78 3.22  
    Qiagen QGEN 3/15/10 21.5 19.6 -9 19 18.8 36 20.05 10.5 22.95 26.5  
    Quidel QDEL 6/16/10 12.4 14.5 16 18.65 19.9 31.3 26.45 41.7 24.55 31.5  
    ResponseG RGDX 2/3/12 1.5     1.3 1.4 -13 1.52 9.35 1.25 -10  
    Sequenom SQNM 11/18/09 3.75 8.03 114 3.5 4.93 10.8 4.3 -7.6 2.29 -51  
    SeraCare SRLS 11/18/09 2.75 4.75 73 acquired            
    ThermoFish TMO 7/25/12 53.5     59.4 65 44.5 86.35 35.4 97.69 53  
    Vermillion VRML 5/15/13 2.53 NEW     1.37 73 2.65 101 2.54 92  
                               
    New Ideas                          
    Luminex LMNX   19                    
    MeridianBio VIVO   25.5                    
    Nanosphere NSPH   2.17                    
    Nanostring NSTG   11.3                    
                               

    Disclosure: I am long CSII, CPHD, RGDX, NSPH.

    Stocks: CSII, ALR, ILMN, TMO
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