Before we dismiss the Barron's article as a plot for the benefit of short traders and harm longs, I suggest that you reference the article "Two Risky Health-Care Companies Become One." by Bill Alpert(6/20/15). We all know the destruction of the sp that followed.
Of course having time is an enviable position. I will counter with the proposition of opportunity costs. And that's the rub isn't it. Weighing the risks for an uncertain future, or swinging for base hits.
The GeneDx division of BRLI will never contribute to the operating revenue for OPK. Genomic profiling for dx is dominated from a long list of diagnostic labs, many of which are world leaders offering therapy.
For GeneDx to prevail the target should be to partner with oncology therapy developers.
I'll give you this, that during his younger years--Redstone, Icahn, Pickens and the like--Frost was exceptional. But now his multitasking energy has waned. It's just nature's way. Time for the old goat to resign as CEO and pass the baton.
Actually my background was medical sample handling.
LOC will erode dedicated brick and mortar processing, with more analysis automated and testing labs will focused on pathology with DNA sequencing.
Lastly, you have no right to insult anyone. Kid_O.
What if the Dr croaks? Is the bench deep enough to allay investor's fear? And if or when he does check-out his estate may decide to cash in the chips.
As far as Warren Buffet, aka the oracle of Omaha, todays investment landscape is vastly different. Hedgies, dark pools, flash trading, political instability will change our everything.
All conjecture at best. Perhaps the motivation for your pronouncement is sinister.
Anyone with inside info would certainly not broadcast this on a mb. .
I'm not a true believer in market technicals. Whether OPK goes to $7 or $70 can't be predicted using charts and indicators faithfully. What is painfully obvious is the disastrous decision to acquire BRLI and the mismanagement of the Rayaldee approval. The outcome of these decisions has been a huge loss for shareholders value. Not to mention discouraging new investors to buy into the OPK story.
k9, my day was great. Although my OPK holdings remain barely above the b.e.
As far as the GeneDx position as a important revenue generator to BLRI, I remain skeptical that they have any significant role in targeted therapies, As proof, I suggest that you examine the ASCO conference. Notice no BRLI presence in this important oncology meetings. The implication,of course, is that they have little to offer other than "me too." In this dynamic sector, me to doesn't cut it.
We can only speculate how greater the $SP would be had they not acquired BRLI. Not a prudent decision which resulted in greater dilution in exchange for a lab that no one else wanted. The cost to recruit and train representatives for 4K would have been modest compared to the sunk cost of an entire test lab.
O.T.: Not only is your language disgraceful, but also your stock movement analysis is without even a smidgeon of redeeming quality.
Back to the corner with your dunce cap
We agree on the merits of Chanos', but I believe that you're ignoring the influence of the BRLI dilution. If it was for the sales reps to call on the medical community for 4K testing, alternative sales channels were available.
The lab business is a cut throat business with high cap-ex and little pricing power.
Greater revenue and earning texture during the next earnings is a must.
Sequenom is a duster. The genomic testing is intense with a myriad(no pun here) of labs, clinics, medical institutions, pharma and biopharma providing testing. Couple this with declining asking prices and insurance reimbursement issues.
Another reason to ask why in the hell would anyone buy another lab(hint:BRLI).It would have been so much smoother with a JV instead.
Good points. Along with this the RPT lab was designed and fitted specifically for sample processing for Sequenom. A smart move by the FMI folks.
Another compelling reason for a CEO while leaving the Dr . at the Chairman's position. This re-alignment should allow him the time to do what he does so well: find opportunities to grow the pipeline.
When you analyze the reasons for the BRLI acquisition, the bottom line will be the success of 4k adoption. On its own merits as a stand alone operation, the lab analytical business is capital intensive, modest margins., varied and diverse competition.
The argument of now having a ready trained sales force is economically misguided.