Veracyte: Fading The Rally

Jul. 15, 2022 3:58 PM ETVeracyte, Inc. (VCYT) Stock, , , , 1 Comment

Summary

  • Shares of cancer diagnostics concern Veracyte, Inc. have shot up approximately 60% over the past month, snapping a deep decline.
  • That said, valuations were stratospheric (22.6x FY21 sales at their peak), but shares of unprofitable Veracyte now trade at just under seven times FY22E sales net of cash.
  • With two expensive FY21 acquisitions expected to provide a long runway of solid growth, the recent insider buying and recent stock rally merited a deeper dive.
  • An investment analysis follows in the paragraphs below.
  • Looking for a portfolio of ideas like this one? Members of The Biotech Forum get exclusive access to our model portfolio. Learn More »

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You can either have individual liberty, or dependence on the government. One is designed to undo the other.”― A.E. Samaan

Today, we post a deep dive on a diagnostic firm that is

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This article was written by

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Bret Jensen has over 13 years as a market analyst, helping investors find big winners in the biotech sector. Bret specializes in high beta sectors with potentially large investor returns.

Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary and a portfolio update every weekend. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Bret Jensen is the Founder of and authors articles for the Biotech Forum, Busted IPO Forum and Insiders Forum.

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