Why Luminex Is Poised to Keep Plunging

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biological testing technologist Luminex (NASDAQ: LMNX  ) has received an alarming one-star ranking.

With that in mind, let's take a closer look at Luminex and see what CAPS investors are saying about the stock right now.

Luminex facts

Headquarters (founded)

Austin, Texas (1995)

Market Cap

$730.6 million

Industry

Life sciences tools and services

Trailing-12-Month Revenue

$202.6 million

Management

CEO Patrick Balthrop Sr. (since 2004)
CFO Harriss Currie (since 2003)

Return on Equity (average, past 3 years)

4.4%

Cash/Debt

$56.4 million / $2.8 million

Competitors

Affymetrix
Life Technologies
Sequenom

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 14% of the 106 members who have rated Luminex believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those bears, All-Star bclan13, succinctly summed up the bear case for our community:

Other technologies are coming in and taking away more and more of where Luminex's performance envelope has a competitive advantage (lab geeks' "mid-plex"). I see particular pressures in genetic disease testing. ... Longer term, there is a stable business for Luminex in [Human Leukocyte Antigens ] testing (particularly the protein tests) but this is not going to provide double digit growth forever -- a requirement of a company with this kind of valuation.

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Read/Post Comments (1) | Recommend This Article (1)

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.

  • Report this Comment On February 08, 2013, at 1:00 PM, gerras wrote:

    As a physician, I know that the newly approved

    panel for quick diagnosis of several gastrointestional

    causes of common disorders is a first and a will be

    highly used product for in hospital and outpatient

    testing. Foolish to ignore its significance on top

    and bottom line of Luminex.

    Gerras

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