Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Illumina's Rich Expectations

|Includes: Illumina, Inc. (ILMN)

Illumina (NASDAQ:ILMN) is a biotech stock we've been watching (and investing in) for quite a while. The company reports tonight. It's a great company, but I've shorted a small amount of shares going into earnings. From what I've heard recently from several sources is that the gene sequencing market is slowing down. I find the recent runup in Illumina shares perplexing.  Illumina is nearing a 52-week high. It's PEG is 1.67 and P/E 34. It's ripe for a nasty correction on an earnings disappointment. I would cover or buy the shares back in the low 30s, which is my target price.

Disclosure: Short ILMN, long ILMN puts.