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Better late than never: William Blair, Lazard, and Ladenburg Thalmann all downgrade shares of...

Better late than never: William Blair, Lazard, and Ladenburg Thalmann all downgrade shares of Sequenom (SQNM) on the heels of Wednesday's Q2 report. The stock is now off 36% premarket. (Previous: Payment concerns tank SQNM; Q2 results)
Comments (3)
  • Wedbush today maintained an Outperform rating on Sequenom (NASDAQ: SQNM) with a price target of $5.00. Shares tumbled as a result of disappointing earnings on Wednesday. Along with many other companies in the diagnostics industry, Sequenom experienced delays in receipt of payments as a result of molecular diagnostics coding changes adopted by CMS, Medicaid and third party payors. In the view of analyst Zarak Khurshid, issues are not the "end of the world."
    "The new codes appear to be delaying multiple customers by requesting additional information to process claims and many Medicaid plans have yet to implement the new codes, which is also affecting payment from some of the few paying Medicaid states. The company had expected some impact, but was surprised by the magnitude of the effect in 2Q13," said Khurshid.
    He thinks Sequenom will eventually recoup delayed payments.
    "The company says it has already begun to see an improvement with the coding issue in July, which is encouraging . . . We are aggressive buyers below $4," he concluded.
    (from StreetInsider 9:43am)
    25 Jul 2013, 09:51 AM Reply Like
  • I agree with pjsburk's comment. I hate all the panic associated with this report.


    Let me understand this: difficulties in recovering payment have effected income. the difficulties stem from new payment coding requirements by CMS, Medicaid, and third party payors. this does not mean the funds are not going to be realized, just delayed. I see this as a great buying opportunity.
    25 Jul 2013, 10:39 AM Reply Like
  • Haha, where can I place the bet that they will upgrade next quarter ?
    Thanks for the discount, I doubled my amount yesterday.


    See you at Q3 earnings
    26 Jul 2013, 07:18 AM Reply Like
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