Genomic Health Shareholders meeting On the cusp of greatness
This morning I attended the annual shareholders meeting with just a handful of people and two who post on this board, one that is "most likely" the largest retail shareholder of GHDX shares. This is also a family vacation to the beautiful Bay area.
Presentation and questions like last year. You can view many of the films Genomic Health has made on their website.
Just one item that drove it home to me is that It has taken Genomic Health and their trials a decade since the genomic was built to achieve 400k tests, but that number will jump five fold to 2 million by 2020.
GHDX is currently way undervalued for a few reasons.:
With 280M in revenues this year and and no debt, the normal industry multiplier of 4-6, GHDX is less than three.
GHDX also spends an amazing 20% on R&D. They are setup in over 70 countries for sales right now. The company is pretty much owned by just a few.
I don't know when or why or who but this is just a shell for a much bigger operation. The CEO noted that sales are just starting acceptance for prostate which will be Genomic healths largest product. What I also found interesting is that the biggest factor slowing build out is physician and chemo companies resistance. With only 25% of chemo effective and GHDX test being 99% correct on what will work, a lot of chemo and physician money will dry up when Insurance finally is able to say No to this "special interest"
I am very comfortable owning and will hold this stock until greatness comes.
Now I'm going to Disneyland !
any thoughts on how the OncoDX prostate test will compare to OPTKO 4K test? One is based on genetic markers whereas the other is based on a blood test for relative differences in 4 different types of PSA readings. It seems that at some point head to head testing will be necessary to differentiate the Miogen, GH and Optko tests.