Update ILMN 12n EDT trading 4/22
Illumina (ILMN) is selling off from the opening and is now down 4.8% on heavy volume of over 2M shares. The stock has a high PE of 83, P/S of 15 and 95% institutional holdings. Profit taking is underway. The chart shows a triple top at the $200 level in Q1 2015. Illumina has been a growth/momentum stock but metrics now matter to new investors. Sequencing will remain an important technology for drug development and diagnostic applications but it is time to step back and look at valuations and overall market trends.
Rayno Biopharmaceutical Stocks: Amgen (AMGN) Beats
Amgen (AMGN) stock was up 1.5 % today and over 2% after hours to $172. Total Q1 revenues were up 11% to $5B compared to prior quarter in 2014 and EPS increased by 33% to $2.48. Free cash flow was $1.2B. Earnings guidance were raised but biosimilars are looming in 2016.Amgen (AMGN) was recommended on 2/2/09 at a price of $55. The stock is up 46% over one year.
The Rayno Large Cap Biopharma Portfolio is up 16% YTD and includes AMGN, ALXN,BIIB, GILD, REGN and RHHBY.
Rayno Tools and Diagnostic Stocks: Illumina (ILMN) Beats
Illumina (ILMN) stock was up 3% today and over 4% after hours to $206. Total Q1 revenues were $529M or $0.92 per diluted share up 28% compared to prior quarter in 2014 and GAAP net income was $137M compared to $60M in 2014 Q1. Free cash flow was $30M for Q1. Illumina (ILMN) was recommended on 2/2/09 at a price of $29 and the stock is up 47% over one year.
We will review our Diagnostics and Tools portfolio after all Q1 earnings are in. Stocks in the Rayno universe to watch are ABAX HOLX, QGEN and TMO.
Healthcare and biotech stocks came back today although speculative stocks were mixed. The IBB was up 1.83%. Rayno Mid Caps were strong lead by Vertex (VRTX) on usual M&A talk. Somebody is expecting big things from Incyte (INCY) up today over 3% and up 49% YTD!
Risk remains on.