I don't pretend to be an SDIX expert, but looking at the flat revenue, the lack of profits and the exuberant reaction of the stock price upon receiving FDA buy off on a single test, I can understand the thought process that might lead you to believe what is good for SDIX is bad for NEOG.
NEOG, however, is hardly a one trick pony. That one test is not going to be a huge determinant in the share price, even if one were to concede the entire market to SDIX, which I don't think will happen.
NEOG is down because it had a very strong run in the last year that was, frankly, a bit exaggerated. Shorts pulled out and are undoubtedly starting to come back. Profits are being taken. I also suspect some people were, unrealistically, expecting the food safety bill to magically turn into an immediate revenue bump and moved on to some other "get rich quick" scheme.
In the meantime, even with the recent price decline, we've had a very good return in the last 12 months and I think the next 12 months will be very good, as well.
Very sloppy and uninformed selling today. One should be looking at today's quarterly results in absolute terms not against a meaningless "consensus" based on maybe four legitimate analysts covering the company.
The consensus is kind of like guessing what seat in the bleachers the ball is going to land in on any given quarter.
Not especially unusual- someone is trying to liquidate a fairly large position- probably as already noted in some sort of "sell on the news" strategy. I love the downplayed headline- "NEOG meets expectations on earnings, beats on revenues"- just how many stocks are there nowadays where the analysts PREDICT 33% earning growth, and it actually happens.
Even after the several stock splits over the years, the float is tiny by Wall Street standards. With mutual fund managers trying anything to pump their returns, we will probably see more of this kind of action in small and mid cap companies. You just can't sell several hundred thousand shares in one day, without a big impact on the price. Heck, on a slow day, you can buy or sell 100 shares, and see the impact on the chart.
Of course, I can afford to be philosophical about NEOG- I've owned it for almost 15 years, and even with today's price drop, my annual rate of return averages over 20%, and I long ago covered all my basis by trading off a couple small blocks.
It remains a company where the management will give you straight answers- whether you own 100 shares or 100,000. Someday, after I'm long gone, my kids or grand kids will sell off my shares. I doubt it will happen in my lifetime. Although I might have one or 2 more buys left in me.
Happy New year Mach from another long time holder. Todays action is looking more and more like a bigboy taking out the stops for a few thousand shares. A drop of a few hours and the stock price finishes flat. In 2 hours, we'll know.
I tried to short this stock last week at 42.40 and couldn't because the brokerage didn't have the shares and apparently couldn't borrow them. I think Neogen is a great company but not one worth 40 times earnings.