Rayno Diagnostics and Tools Focus Stocks: 2013 Performance YTD
A diversified life science portfolio must include clinical diagnostics and tools stocks because the synergies between therapy and diagnostics have never been stronger. Breakthroughs in molecular diagnostics for personalized medicine, genetic testing and infectious diseases are driving new product cycles for timely, more cost effective therapies. Sequencing tools from companies like Illumina (ILMN) and Life Technologies (LIFE) are entering an explosive growth phase leading the way for new clinical applications in a new age of molecular medicine.
In addition to the genomics breakthroughs and new product trends there is always an M&A possibility with these stocks. Look at our previous picks with five buyouts.
Top Winners YTD
Cardiovascular Systems, Inc. (CSII) up 135%. Revenues growing 28%-interventional treatments for vascular disease.
Alere, Inc. (ALR) Up 81% . Turnaround value play still trading at 1X sales in rapid diagnostics and solutions.
Illumina, Inc. (ILMN) Up 73.6%. Momentum play beats top and bottom line. Company in arrays and sequencing.
ThermoFisher Scientific (TMO) Up 53%. Leading growth Company in tools, diagnostics and services.Busy with M&A.
Quidel Corp (QDEL) Up 31.5% small cap growth in rapid diagnostics solutions.
Top Losers YTD
Sequenom, Inc.(SQNM) Down 51% volatile stock in genetic analysis, patent issues with prenatal testing platform.
Response Genetics, Inc. (RGDX) Down 10% on disappointing sales growth with oncology tests.
Abaxis, Inc. (ABAX) Down 5% on disappointing earnings and sales.
Look at laggards Hologic (HOLX) and Qiagen (QGEN) for new buys.They are both mid-cap companies with growth potential.
New Long Ideas
We are giving you a “heads-up” on four new trading ideas. We know all of these companies but need to do a little more work on entry price, financials and technicals. These stocks can be volatile and some have already run up. Each of these companies has unique strengths. We will provide a sketch of each Company and rationale for investment: Luminex (LMNX $19), Meridian Bioscience (VIVO $25.5), Nanosphere (NSPH $2.15) and NanoString (NSTG $11.3).
Luminex and Meridian are small cap value ; Nanosphere is a turnaround; Nanostring is a recent IPO and early stage growth.
| 2010-2013 | Original | Price | Price | % | Price | Price | % RET | Price | %RET | Price | %RET | ||
| DX and Tools | Recomm | Dec’10 | Ret | 10/2/12 | 1/2/13 | 1 yr | Jy1 | YTD | 12-Nov | YTD | |||
| Abaxis | ABAX | 2/2/09 | 15 | 26.9 | 79 | 37.9 | 37.8 | 36.7 | 48.36 | 30.4 | 35.45 | -4.5 | |
| CardioV.Sys. | CSII | 11/5/10 | 7.15 | 11.7 | 63 | 11.45 | 13 | 29.7 | 21.29 | 69.6 | 29.5 | 135 | |
| Celera | CRA | 3/28/10 | 7 | 6.3 | 18 | acquired | |||||||
| Cepheid | CPHD | 10/23/12 | 31.4 | 35.5 | 13 | 34.72 | 2.54 | 41.97 | 24 | ||||
| Exact Sci | EXAS | 12/10/10 | 5.6 | 5.98 | 6.8 | 11.36 | 11 | 36 | 14.44 | 36.4 | 11.52 | 8.78 | |
| GenomicH | GHDX | 2/26/13 | 28.5 | NEW | 27.24 | 6.3 | 32.85 | 20.6 | 34.45 | 26.5 | |||
| GenProbe | GPRO | 2/2/09 | 45 | 58.4 | 30 | 82.55 | acquired | ||||||
| Hologic | HOLX | 4/9/13 | 21.6 | NEW | 20 | 19.57 | -2.2 | 20.51 | 2.5 | ||||
| Illumina | ILMN | 2/2/09 | 29 | 63.3 | 118 | 51.2 | 55.4 | 81.8 | 76.27 | 37.2 | 96.52 | 73.6 | |
| Immucor | BLUD | 4/5/10 | 20 | 19.8 | 0 | acquired | |||||||
| Alere | ALR | 2/2/09 | 25 | 36.6 | 46 | 19.64 | 19 | -18 | 25.05 | 35.4 | 33.57 | 81.5 | |
| MicroFluidics | MFLU | 7/6/10 | 0.77 | 1.34 | 74 | acquired | |||||||
| NeoGen | NEOG | 7/2/10 | 26 | 41 | 58 | 42.8 | 45.6 | 48.8 | 56.41 | 24.5 | 46.78 | 3.22 | |
| Qiagen | QGEN | 3/15/10 | 21.5 | 19.6 | -9 | 19 | 18.8 | 36 | 20.05 | 10.5 | 22.95 | 26.5 | |
| Quidel | QDEL | 6/16/10 | 12.4 | 14.5 | 16 | 18.65 | 19.9 | 31.3 | 26.45 | 41.7 | 24.55 | 31.5 | |
| ResponseG | RGDX | 2/3/12 | 1.5 | 1.3 | 1.4 | -13 | 1.52 | 9.35 | 1.25 | -10 | |||
| Sequenom | SQNM | 11/18/09 | 3.75 | 8.03 | 114 | 3.5 | 4.93 | 10.8 | 4.3 | -7.6 | 2.29 | -51 | |
| SeraCare | SRLS | 11/18/09 | 2.75 | 4.75 | 73 | acquired | |||||||
| ThermoFish | TMO | 7/25/12 | 53.5 | 59.4 | 65 | 44.5 | 86.35 | 35.4 | 97.69 | 53 | |||
| Vermillion | VRML | 5/15/13 | 2.53 | NEW | 1.37 | 73 | 2.65 | 101 | 2.54 | 92 | |||
| New Ideas | |||||||||||||
| Luminex | LMNX | 19 | |||||||||||
| MeridianBio | VIVO | 25.5 | |||||||||||
| Nanosphere | NSPH | 2.17 | |||||||||||
| Nanostring | NSTG | 11.3 | |||||||||||