This is one stock that will do OK in both weak market as well as in bull market. Reasons are..this compay products are money savor for health care management doing weak economy /translate to weak market...co. continue growth through new product development,high probability of success compare to biopharma drug FDA approval...GHDX products are needed for life saving treatments/needed by patients regardless of market condition or economy...Growth stocks always get big rewards doing bull market. Therefore it's good stock to own ..long term...this stock is favorite of institutions like Yale University trust fund..Baker Bros. managed funds.
"short" refers to the time the transaction is usually open, as well as the downside nature. GHDX has provided innumerable opportunities for short sellers to be on the wrong side of a trade. Read the posts on this site, geniuses see double tops, which if they existed are shorting opportunities. Of course, they were wrong and if short were hammered. The reality remains that this is a great company, well run, with a good product and a pipeline that could make it a big player.
Zacks, which like you has always been too pessimistic about this stock/company, is neutral 10% higher. They have been "neutral" or worse since this stock was in the teens. Consequently, I take this as positive.
"Recently, we reiterated our Neutral recommendation on Genomic Health with a target price of $26.00.
The year 2010 has been one with remarkable success for Genomic Health as it marked the first full year of profit on the back of the Oncotype DX breast cancer test. Revenues climbed 19% to $178.1 million during the year driven by strong growth in the number of tests delivered.
Genomic delivered 57,270 Oncotype DX test results during the year, up 17% despite an anticipated slowing of test volume due to the completion of the TAILORx trial in the third quarter. Historically, TAILORx represented 3−4% of total test volume.
Although the Oncotype DX colon cancer test, launched in 2010, is yet to make a significant contribution to the top line, the situation could improve gradually as the company tries to receive reimbursements. In July 2010, the company obtained the first reimbursement coverage for Oncotype DX colon cancer test.
Clalit Health Care, the largest insurer in Israel covering 65% of the population, established a reimbursement coverage policy for the colon cancer test. The company has also secured reimbursement from select private insurers in the US including Kaiser Permanente, a plan covering 11 million lives, and Group Health Cooperative, a plan covering 600,000 lives.
Genomic is conducting several studies to establish the significance of Oncotype DX colon cancer test. Favorable data from these studies should result in increased penetration. Consequently, we believe contribution from this test to increase over time based on more awareness that favors greater penetration.
Having established a strong foothold in the US market, Genomic Health is targeting the international arena and had established a European subsidiary in February 2009. The company believes that international sales of its Oncotype DX tests depend on the availability of reimbursement. In this regard, the company has secured reimbursement coverage for more than 26 million lives outside the US for breast cancer patients.
Further, Genomic Health is conducting several studies to expand its portfolio or increase acceptance of the tests, though many of these are in their initial stages. Moreover, we remain concerned about the competitive scenario