Why Sequenom Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of life sciences company Sequenom (NAS: SQNM) surged 11% on Thursday after the company announced an agreement with health-care cost-management specialist MultiPlan.
So what: MultiPlan's clients will now have access to Sequenom's MaterniT21 PLUS test, used for pregnant women at increased risk for fetal aneuploidy, which should give Sequenom sales a much-needed boost. The shares have been beaten down over the past year on concerns over compromised data, but today's big endorsement could serve as a turning point in sentiment.
Now what: Don't let this pop keep you from looking into the stock. Even with the rally, Sequenom shares are still down about 45% from their June highs. When you couple that battered stock price with the company's cash-rich balance sheet and still-attractive growth prospects, Sequenom seems to have plenty of upside left.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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.
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