Why Pacific Biosciences Shares Jumped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Pacific Biosciences of Californa (NASDAQ: PACB  ) jumped 17.8% today on news that the company's Single Molecule, Real-Time (SMRT) technology will be used in a major study conducted by the U.S. Food and Drug Administration, Aligent Technologies (NYSE: A  ) , and UC Davis. 

So what: The 100K Pathogen Genome Project is an expansive study that will look at the genetic sequencing of 100,000 foodborne pathogens. It will help to provide insight on how bacterial infections evolve. While this is a great story and may provide some valuable data for scientists to help us fight disease, it doesn't change the investment thesis for Pacific Biosciences. It's a young company that has yet to become profitable, but it has developed an interesting product that could be very useful in unlocking the secrets of DNA. 

Now what: SMRT is the flagship product for Pacific Biosciences, and the outcome of the company is largely dependent on the adaptation of this technology in the world of genetics. The industry is a highly competitive space that can change with the development of a new technology. Pacific Biosciences has relied heavily on issuing new shares to keep afloat while it slowly marches toward profitability, so an investment in the company can get diluted fast. Investors who have a very high tolerance of risk might want to take a flyer on this company, but a more prudent investor should wait to see strong revenue growth.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2185996, ~/Articles/ArticleHandler.aspx, 10/1/2016 3:05:03 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 17 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:02 PM
A $47.09 Up +0.80 +1.72%
Agilent Technologi… CAPS Rating: ***
PACB $8.96 Up +0.14 +1.59%
Pacific Bioscience… CAPS Rating: ***