Regroup and Look for Q4 Drivers
A lackluster earnings quarter that evokes the blahs. The hottest Company in the sector Cepheid (CPHD $36.12), took an earnings hit, driving the stock down 30% to the $32 level now recovering. This life science sector has not participated in the recent NASDAQ rally and biopharmaceutical stocks (now looking toppy) have outperformed. We are cautious so keep a lot of cash for rebalancing. Two stocks that have taken big hits that warrant review are Alere (ALR $18.74) and Luminex(LMNX $18.35).
Our focus stocks in Diagnostics and Tools hit their highs in mid-July. We added ThermoFisher (TMO) at $53.5 and reiterated Illumina (ILMN $41.51) buy under $40.
| Company | Ticker | Price | RevEst | Q2Rev | Price | 2011 | P/S | PE | PEG | SE | |
| May’11 | 2012 yr | 2012 | 15-Aug | Rev | BV | ||||||
| GenProbe** | GPRO | 80 | 642 | 153 | 82.75 | 576 | 5.8 | 64 | 1.9 | 700 | |
| Abaxis | ABAX | 28 | 181 | 42 | 38.76 | 155 | 4.7 | 63 | 2.9 | 164 | |
| Alere | ALR | 36 | 2,780 | 701.6 | 18.73 | 2386 | 0.6 | n/a | 0.7 | 2,191 | |
| Cepheid | CPHD | 30.5 | 334 | 81 | 36.63 | 70.2 | 7.2 | n/a | 92 | 240 | |
| ChemBio | CEMI | n/a | 25.3 | 6 | 4.95 | 19.4 | 1.6 | 6 | 1.3 | 13.5 | |
| ExactSci | EXAS | 7 | 4.12 | 1 | 10.6 | 4 | 152 | n/a | n/a | 64 | |
| GenomHlth | GHDX | 25.85 | 236 | 57.6 | 30.16 | 206 | 4.6 | 135 | 5.7 | 134 | |
| Immucor* | BLUD | 20.3 | 345 | 83.3 | 27 | n/a | 5.5 | 21.2 | 2.2 | n/a | |
| Luminex | LMNX | 20 | 208 | 48.3 | 18.22 | 184 | 3.6 | 65 | 1.3 | 255 | |
| Meridian | VIVO | 23.4 | 173 | 42 | 18.18 | 160 | 4.3 | 23.9 | 1.6 | 141 | |
| Neogen | NEOG | 40.6 | 206 | 48.5 | 40 | 173 | 4.6 | 43 | 1.9 | 219 | |
| Orasure | OSUR | 7 | 90.4 | 22.6 | 10.5 | 82 | 6.6 | n/a | n/a | 99 | |
| Qiagen | QGEN | 20 | 1,230 | 307 | 17.5 | 1170 | 3.3 | 42.7 | 2 | 2,548 | |
| Quidel | QDEL | 14.55 | 149 | 30.8 | 16.55 | 158 | 3.7 | n/a | 3.3 | 185 | |
| RespGene | RGDX | 2 | 16.5 | 3.84 | 0.8 | 22.6 | 4.9 | n/a | n/a | -6.1 | |
| Sequenom | SQNM | 7 | 86 | 18.2 | 3.6 | 55.9 | 4.8 | n/a | n/a | 102 | |
| SeraCare# | SRLS | 3.7 | 46.2 | 11 | 4 | 43.5 | 1.8 | 36.3 | n/a | 40.3 | |
| Techne | TECH | 80.5 | 322 | 83.6 | 67 | 290 | 7.6 | 22 | 1.8 | 644 | |
| * sold for $1.97B to TBG Capital | #sold for $80M | **sold for $3.75B | |||||||||