M&A Premium Rocks On
In a flat life science market eclipsed by the LinkedIn (LNKD) IPO and its day trading frenzy, many life science stocks in the Rayno Life Science Portfolio logged decent gains. As reported earlier today GenProbe(GPRO) sold off down 4.37% but it was up 8% yesterday. After ThermoFisher bought allergy Dx leader Phadia traders moved on and took profits in GPRO. GenProbe is a core holding in the Rayno Life Science Portfolio up almost 100% since the original recommendation but it is now near peak valuation depending upon buyout negotiations.
Abaxis (ABAX) was up 10% a 52 week high, today on no apparent news. The Company presents next week at the Think Equity Conference. Abaxis is up 100% since recommended at $15. Before the move ABAX was trading at less than 4X sales still decent value with a strong balance sheet.
Cubist (CBST $35.97) continued its run up 2.2% with the takeover chatter active.The stock is up 80% since recommended on 2/2/09.
Another Rayno Life Science pick Cardiovascular Systems(CSII) was up 5.3% and 32% for one month.
NeoGen (NEOG), a diagnostics Company focused in food and animal safety regained traction, now at a 52 week high up 3.95%. The valuation at a P/S over 5.5 and a PE of 44 it is not cheap but the growth trend is intact with a strong balance sheet.
At our last review of the Rayno Life Science Portfolio we recommended raising a little cash from high fliers, but no changes were made to the portfolio. Cash can be raised with ALXN, EXEL, CEPH, ILMN,and GPRO. Our new buys Optimer (OPTR) and Quidel(QDEL) are doing well up 15-20%.