GPRO (Genprobe) & QGEN: the 2 horses to ride, baby
The technicals of these two are phenomenal (notice GPRO pushing to another new high today). Both are big, aggressive and hugely profitable. And both have tremendous pipelines. I'm adding 5% to my position with each 5% advance for the next 5 years. Anyone want to debate that?
Couldn't resist sending this to you for 2 reasons>>>
a. I assume it's Alpharetta Gerogia....me Dunwoody
b. QGEN is my first investment where I buy more whenever it ADVANCES...actually I accumulate whenever we get an 8% bump....after steady accumulating since $11 p/s, I had been planning to unload in 19-20 range, but Digene purchase certainly reconfigures this co. My next purchase would be 18.7..we'll see!
It bothers me to view this as the strategy of a technician rather than a fundamentalist...obviously, fundamentals has more todo with stock picking rather than accumulation/distribution strategy.
Only problem with doing a whole portfolio based on advances is that you will ocasionally buy the latest hot flashes (news)rather than a good tech or fundmtl reason.
We have certainly chosen an excellent co. to accumulate...no?
Dunwoody fundamentalist: Good to hear of a local with similar stock interests! I agree on all points. I've been acquiring on advances on both QGEN and GPRO - with accompanying high volume. Both have been easy to find lately. These stocks feel like they're mostly institution owned (notice the "thin" message boards and block trades to the upside), which is a good sign. Now though, I'd like to acquire smaller chunks on slight pullbacks, AFTER the volume advances. Feels better.
The big question: are these stocks poised for 5-10 year runs, owing to the dawning of a huge age of bio-marker discoveries, demographics, etc? Like with great performing sectors of the past, sometimes stuff comes out of nowhere to provide the rocket fuel (recall that the founders of CSCO sold the company for $50m bucks in 1988 - even they didn't see the WEB coming!!
With QGEN the potential fuel is DIGE/HPV and the exloding awareness by women worldwide that it's a cancer cause. For GPRO, it's a series of things but obviously the spectacular advances in Prostate Cancer tests.
Best of luck. I'm not going to trade these. See you on the beach in 2015!
No arguments here. I've been a DIGE holder and will soon be holding a large position in QGEN. Seems like a well run company. There are some incredibly bright individuals on the DIGE board who will probably start making their way over here.
We are kind of bummed out that Digene did not get sold at a higher multiple, but I think it will turn out to be a real bargain for QGEN.
We have all been waiting on guidelines from the ASCCP that should further drive the adoption of routine HPV testing. They should be released in the near future.