Invitae Busted Business Model Offers A Tactical Opportunity

Bashar Issa
6.28K Followers

Summary

  • NVTA's business model remains untested, having spent the past decade building a precarious market position with artificially low pricing strategies.
  • Under its turnaround plan, management cut a third of the workforce, which bodes favorably for Q3 EPS and cash flows and offers a short-term opportunity to capitalize on current volatility.
  • NVTA might seem undervalued according to some metrics, but when incorporating debt, it is overpriced compared to its main rival MYGN.

Medical technologist wear broken latex gloves

Pijitra Phomkham/iStock via Getty Images

Investment Thesis

Illumina's (NASDAQ:ILMN) technological advancements in gene sequencing aided the development of the genetic testing market by improving testing accuracy while also drastically lowering the cost of disseminating genome analysis data. However, it was

This article was written by

6.28K Followers
Bashar is a contributing writer at Seeking Alpha, focusing on Long/Short investment ideas, with a geographic focus in North America. Before that, Bashar worked at an Investment Fund in the United Kingdom. He has a Master's degree in Finance from the Queen Mary University of London and a Bachelor's degree in Economics from Middlesex University.

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.

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