Again, I am doing a different strategy with this name than others that break support since I am looking to build a sizeable position - and without knowing the ultimate bottom I will be layering in slowly. Ultimately if the stock falls low enough I'd be willing to go about 6%+, so about 60-65% of that final position is built. Willing to sustain short term losses on this one for something I plan to hold for multiple years. If the market crumbles in the coming weeks we might get some of our lower target prices. SQNM reports next Wednesday so maybe that will help alleviate the mass hysteria...
A good example of a company I am not adding to is Thoratec (THOR) which is more of a typical strategy - this also been hit but is in no man's land and I don't see an obvious reason for the weakness (poor earnings coming? who knows) - but with that name I am sitting on my hands until I see a return to strength or more information. If this name gets to $23s I'll probably dip in since it has fallen so quickly.
Long Sequenom, Thoratec in fund; long Sequenom in personal account
5 comments:
That sure was a hellish drop today... Didn't see any real reason for it.. Nothing on the chat boards. Oppenheimer downgraded it... Still, there is a goodly short interest. This from Shortsqueeze.com (The positive rating indicates that this is a shortsqueeze candidate):
Sequenom Inc. $ 16.93
SQNM -1.97
Short Interest (Shares Short) 8,104,500
Days To Cover (Short Interest Ratio) 4.6
Short Percent of Float 15.43 %
Short Interest - Prior 9,118,700
Short % Increase / Decrease -11.12 %
Short Squeeze Ranking™ 77
There is this... Still seems like an effective test though:
NEW YORK (AP) -- Shares of Sequenom Inc. fell Tuesday after the company revised data on its SEQureDx Down syndrome test, saying it was not as effective at identifying the condition as previously reported.
In a group of 459 pregnancies, Sequenom said it correctly diagnosed 96.6 percent of the cases of Down syndrome and other genetic disorders, and correctly identified 100 percent of the negative results. Sequenom initially said 100 percent of the positive results and 99.9 percent of negative results were correct.
The company also revised the number of cases that were initially "unresolved," to 94 from 106.
Lazard Capital Markets analyst Sean Lavin said the errors were apparent last week. He said he is still confident in the market for the test, which analysts say could become favored over amniocentesis because it appears to be more accurate, as well as less invasive and expensive.
Yes I posted that earlier in the day in an earlier posts
The Yahoo hooligans are now saying management are liars, and the usual riff raff scaring people and talking lawsuits and stuff like that. Hedge funds pile on, retail gets scared out, hedge funds buy in from retail and away we go. Reverse Robin Hood at its best ;)
Why bother with medical stocks at all? The FDA is too much hassle, and i hate all the event risks.
Gareth, I don't generally "do" biotech for exactly the reason you mentioned. I don't like the event risk. But this is not FDA approval - it is test results. I made an exception here - it has risk and reward. In the long run as long as the test data continues in this trajectory I am satisfied. The price action is random in short run and more based on rumors, innuendos, daytraders, and emotion.
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