4-Star Stocks Poised to Pop: Sequenom
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, genetic analysis specialist Sequenom (NAS: SQNM) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Sequenom's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||San Diego, Calif. (1994)|
|Market Cap||$404.3 million|
|Industry||Life sciences tools and services|
|Trailing-12-Month Revenue||$54.2 million|
|Management||Chairman/CEO Dr. Harry Hixson, Jr.|
CFO Paul Maier
|Return on Equity (Average, Past 3 Years)||(132.3%)|
|Cash/Debt||$101.2 million / $12.1 million|
|Competitors||Illumina (NAS: ILMN) |
Life Technologies (NAS: LIFE)
Sources: S&P Capital IQ and Motley Fool CAPS.
Earlier this week, MajorBob04 tapped Sequenom as tempting turnaround opportunity:
Insiders are buying this stock. And as Seeking Alpha says: "With the stock trading for about 50% of the 52 week high, this could be a good candidate for a rebound in January after all the tax-loss selling ends." I agree.
Over the next five years, Sequenom is even expected to grow its bottom line at a brisk rate of 22% annually. That's faster than that of main rivals Illumina (18%) and Life Technologies (11%).
CAPS member unkownuser elaborates on the growth opportunity:
The Sequenom MaterniT21 prenatal test for Down Syndrome is going to be a much bigger hit than people realize. ...
It is being marketed as an alternative to amniocentesis for women over 35; the intended target market, since they are at highest risk of bearing children with Down Syndrome.
Despite the higher risk (and higher incidence of Down Syndrome) in the over-35 group, the fact is that there are millions more women under 35 having children. ...
So my feeling is that now that detection has been reduced to the level of simple blood work, more and more women outside the high risk category will be requesting the screening as a "just in case" measure.
What this means is that Sequenom's extremely conservative estimate of potential sales, which includes only the 750,000 births yearly to those women in the high risk category; could balloon into something much much bigger.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Illumina. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.