Seeking Alpha

Rod Raynovich's  Instablog

Rod Raynovich
Send Message
Rod Raynovich is an entrepreneur and executive with a focus on life science companies and medical technology trends.He has over 35 years executive experience including Abbott and JNJ and has been involved three successful start-ups. Before starting Raygent and other companies he was also a... More
My company:
Raygent Capital
My blog:
Raygent.com,Rayno Life Science
  • Rayno Dx And Tools 2014 YTD After Correction: ILMN, HOLX, RHHBY 0 comments
    May 23, 2014 9:39 AM | about stocks: HOLX, ILMN, RHHBY

    April Sell-Off Hit Diagnostic Small and Mid Caps

    The bursting of the biotech bubble affected many small cap growth stocks. 2013 was a great year for our portfolio so some weakness was expected after the huge Q1 2014 moves. Most of our picks peaked in Jan/Feb time frame when many of our favorites were hit hard by profit taking. Follow technicals before adding new positions and watch small cap ETFs such as IWM ($111), IWO ($127) and VBK ($118.7) all down 3-5% YTD for recovery.

    • Cepheid (NASDAQ:CPHD) peaked in March in the $55 range. It is holding the ~$40 bottom but is still expensive. It is a leading molecular Dx player with M&A potential.
    • Cardiovascular Systems (NASDAQ:CSII) had a blow-off top near $37 and is down 24.5% YTD. Still a growth stock but wait for $24-26 gap to fill.
    • Quidel (NASDAQ:QDEL) is down 29% YTD after a big revenue and earnings miss. Will need time to recover.
    • Response Genetics (NASDAQ:RGDX) was crushed after missing revenues again. Nothing to do here but hold for LT recovery.

    The life science sector is still very attractive long term per all of our previous posts because of important trends : companion diagnostics, pharmaco-genomics,sequencing, point of care Dx and molecular Dx.

    • Illumina Inc. (NASDAQ:ILMN) is a long term play in sequencing and has 90% of the market with ThermoFisher(NYSE:TMO) as the only major competitor. It is a momentum stock that was hit by profit taking in $180 range but is starting to recover. Strong hold with a buy on weakness.
    • Sequenom Inc.(NASDAQ:SQNM) and Vermillion (NASDAQ:VRML) have both recovered and are always good for trades. Strong holds.
    • Hologic Inc. (NASDAQ:HOLX) is a restructuring play with a reiterated buy in low $20s.
    • RocheHoldings (OTCQX:RHHBY) is a leading mega-cap drug and diagnostic core holding in a life science portfolio.
    • Trinity Biotech plc (NASDAQ:TRIB) was added at $24.75.

    A review of Q1 financial reporting will follow this week. Q to Q revenue growth is key for all of these stocks.

    Rayno Diagnostics and Tools 2014

    2010-2014 OriginalPricePrice%Price% RETPrice'13%RETPrice'14% RET
    DX and ToolsRecomm Dec'10Ret1/2/132013Nov12.YTDMay 22.YTD 
                 
    AbaxisABAX2/2/091526.857937.836.735.45-4.4541.64 
    CardioV.SysCSII11/5/107.211.66631329.729.513525.85-24.5 
    CepheidCPHD10/23/1231  35.51341.972442.6-8.7 
    Exact SciEXAS12/10/105.65.986.8113611.528.7813.7717 
    GenomicHGHDX2/26/1329  27.246.334.4526.526.9-8.2 
    GenProbeGPRO2/2/094558.3530acq      
    HologicHOLX*4/9/1322  20 20.512.523.856.76 
    IlluminaILMN2/2/092963.3411855.481.896.5273.6155.941 
    AlereALR2/2/092536.64619-17.733.5781.535.3-2.43 
    NeoGenNEOG7/2/102641.035845.648.846.783.2237.1-18 
    NanoStringNSTG11/21/1312    11.3 14.8-15 
    QiagenQGEN3/15/102219.55-918.83622.9526.522.5-5.3 
    QuidelQDEL6/16/101214.451619.931.324.5531.521.65-29.9 
    ResponseGRGDX2/3/121.5  1.4-12.91.25-100.9-22.4 
    RocheHoldRHHBY1/30/1467      37.446.7 
    SequenomSQNM11/18/093.88.031144.9310.82.29-51.42.8320.9 
    ThermoFishTMO**7/25/1254  6544.597.69531164.1 
    VermillionVRML5/15/132.5  1.37732.54922.9424.6 
                 
    *HOLX acq GPRO           
    **TMO acq LIFE           
                 
                 
                 

    Disclosure: I am long HOLX, RHHBY, RGDX, TRIB.

    Stocks: HOLX, ILMN, RHHBY
Back To Rod Raynovich's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.