Shares of Cepheid Inc. (Nasdaq:CPHD - news) soared to $10.50 in Wednesday trading from a close of $3.37 on Friday. The stock rose 86 percent on Tuesday and another 27 percent in trading Wednesday.
Cepheid develops genetic profiling and detection systems for contaminants and biological agents. The Sunnyvale, California-based company makes Smart Cycler, a DNA detection system that searches for the presence of targeted substances, such as anthrax.
``The valuations here are getting stressed at these levels,'' Lindberg said. ``If you look at a firm like Cepheid, it is looking at a $230 million market cap with $8 million in revenues this year. That being said, they have got a leading technology, and this is obviously an area of keen interest now.''