Forget about a buy-out; This small cap company has huge long term potential!
I would rather PACB not be bought out. If an offer(s) is made they should hold out for a premium purchase price; in that case it could be over $10 per share, easily. That said, with this company's 'disruptive' technology, the best available cutting edge in its market, both descriptions applied to it in recent articles, LIFE and ILMN share prices are not a question of 'if' but of 'when'. I prefer the long term potential here, and not the short term buy-out profit.
And consider this, from recent stats and articles: At over $100 million cash, the only slightly larger roughly $115 million market cap provides tremendous fundamental support in the current price range on either side of $2 per share; add to that the recent sequential increase in revenues, evidence that the bug issues post IPO with their technology are in fact resolved and beginning to be accepted by it's customers, with more in the till already sold waiting to be fulfilled, and the recent announcement of their next generation sequencer; add to that the tremendous technical support at the 200dma currently at about $1.99 per share, and the recent technical breakout at about $1.90; add to that the CEO's repeat and tremendous demonstration of confidence in where his company and technology are headed with his large Insider purchases; add to that the multiple sources describing this company's technology as 'disruptive' and the best currently available; and there is tremendous early fundamental support as well as tremendous technical support between roughly $1.90 and $2 per share. This is a true 'turn-around' story, and very timely. The stock has risk, of course, but it has tremendous support in the current price range, and huge upside potential, buy-out or not.
The real risk at this time, in my opinion, is the market risk, and at some point, this stock will run of its own accord regardless of the broader market direction.
I am now long, long term! And will add selectively going forward.
I just noticed that on April 17th, 2013 Ford Equity Research made a Hold recommendation for PACB; Previously referenced on TD Ameritrade, there were two old 2011 Sell recommendations, but now there is one old Sell and a new Hold. I am not sure, but I believe Ford Equity Research just upgraded their recommendation from a Sell to a Hold. Either way, this is the first change in Recommendations, and it is both recent and favorable. Over time I expect to see more, and better ones. This is just the start of this fairly recent IPO and now turn-around story. ILMN's strength only bodes all the better for this group, especially PACB.
As for the comments about the importance of today's earnings announcement, I don't believe anyone is expecting anything here. If there is unexpected good news, great, but they only just came out with their newest sequencer upgrade, so I'm not expecting anything more than status quo in the announcement.
It seems clear to me that the recent price volume strength is simply the very important technical support I recently referenced reinforcing itself in a very strong way, which is extremely favorable action, especially since it occurred during the broader market weakness of this past week.