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.
Hey dog, future profits for now are secondary. Since R&D costs are ~$13M, almost 80-percent of revenue, a healthy free cash flow is would trump (bad pun) profit. The big advantage FMI investors can look to is the strong balance sheet.
Regarding the recent run-up in sp, one can point to the liquid biopsy testing now available, the new lab location in RPT, collaboration agreement with Roche and others, but perhaps most of all, this management team and scientists are world-class talent. When I study their competitors, they may have some overlap but pale in comparison.
So it was just a matter of time before the investment community noticed.
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.
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.
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.
All conjecture at best. Perhaps the motivation for your pronouncement is sinister.
Anyone with inside info would certainly not broadcast this on a mb. .
Just a quick thought: if corporate OPK was located in the Northeast--say MA or NYC--greater traction among the investment community, as well as the universities?
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.
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.
Like any news and/or opinion source the content must be appraised by the reader. My point is that there is a correlation between uncomplimentary opinions and a drop in the sp.
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.
It's apparent that underneath the surface (Rayaldee approval, 4K) the fundamentals value the sp at fair value,
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.
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
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.
Neither of you have any grasp of the Theranos technology. The testing of endocrine compounds at ppb sample size is so incredibly dicey. So the interpretation of the testing protocol is open to many opinions. This should answer why Claros has a very long road ahead for approval and adoption.
I would say that Holmes is both a visionary and entrepreneur.
There's the quick and easy recipe to be slaughtered having a majority of your investment $'s in a speculative play. Pure emotional investing.
Of all the thousands of securities listed on the exchanges there nowhere else to invest? Really ?