4-Star Stocks Poised to Pop: Sequenom

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diagnostic-test maker Sequenom (Nasdaq: SQNM  ) has earned a respected four-star ranking.

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

Sequenom facts

Headquarters (Founded)

San Diego (1994)

Market Cap

$191.4 million

Industry

Life sciences tools and services

Trailing-12-Month Revenue

$39.2 million

Management

Chairman/Interim CEO Dr. Harry Hixson, Jr.
Interim CFO Paul Maier

Compound Annual Revenue Growth (Over Past 3 Years)

16.2%

Cash / Debt

$50.1 million / $3.5 million

Competitors

Illumina (Nasdaq: ILMN  )
Beckman Coulter (NYSE: BEC  )

CAPS Members Bullish on SQNM Also Bullish on

General Electric (NYSE: GE  )
Apple (Nasdaq: AAPL  )
Citigroup (NYSE: C  )

CAPS Members Bearish on SQNM Also Bearish on

AIG (NYSE: AIG  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 91% of the 634 members who have rated Sequenom believe the stock will outperform the S&P 500 going forward. These bulls include IdahoAve and All-Star mrindependent, who is ranked in the top 2% of our community.

Late last month, IdahoAve tapped Sequenom as a speculative bet to recover from its scandalous situation: "I am gambling with this one. I am hoping the mishandlings in the Trisomy 21 test were due to incompetent oversight, rather than inadequate science."

In a pitch from last week, mrindependent expands on that sentiment:

Apparently, Sequenom's reported success for non-invasive prenatal testing was based on improperly supervised studies. … Based on the people involved, the theoretical underpinnings and on the promising (but suspect) data delivered so far, I believe that Sequenom has a better than even chance of eventually commercializing its tests (or selling itself to a larger player). If the tests are indeed viable, this company will be worth billions compared to its current market cap of $200 million. In summary, I think reward outweighs risk in this highly speculative stock.

What do you think about Sequenom, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Illumina is a Motley Fool Stock Advisor recommendation. The Fool's disclosure policy always gets a perfect score.


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