We go through the Invitae short thesis in detail on this week's The Razor's Edge.
Akram's Razor and a colleague of his speak to their research and what they've uncovered in the process.
We also break down the Myriad Genetics long that Akram is using as a pair trade here.
by Daniel Shvartsman
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On this week's The Razor's Edge, we discussed Akram's Razor's recent short case on Invitae (NYSE:NVTA). If you're following the stock, you're probably aware of the two articles the author of The Razor's Edge has posted on the company. There's a lot to cover, so we broke it down in a podcast recorded on Monday, November 4th, i.e. two days before last week's earnings came out. It also was recorded before Myriad Genetics (NASDAQ:MYGN) earnings last week. We were joined by a colleague of Akram's, James, to have a little more color on the story.
- 2:00 minute mark - Why Invitae?
- 8:15 - Investment case of accumulating the world's genetic information
- 17:45 - Comparison to Amazon... gene testing as a product.
- 22:30 - Theranos's issues and the comparison to Invitae
- 34:00 - Could Invitae build a data business?
- 40:30 - The long case for Myriad
- 50:30 - Challenges for NVTA
- 58:00 - Where do we go from here? What's the measuring stick?
- 1:03:00 - Is there a path to profitability for NVTA?
- 1:21:30 - Disruption of the market, redirection of resources, fraud issues, and "nobility".
- 1:34:30 - Difficulty of building a sustainable model in healthcare due to costs.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Akram's Razor is long MYGN and NVDA and short NVTA. James is short NVTA. Daniel has no positions in any stocks mentioned. Nothing on this podcast should be taken as investment advice.