Historically, tumultuous times offer some of the best opportunities to buy stocks, and the market's recent mess surely qualifies. Investors are rightfully weary of the prospects of many companies today, but many believe genetic analysis firm Sequenom (Nasdaq: SQNM ) is an exception.
In our Motley Fool CAPS community, 91% of the 662 investors rating the company are bullish, so there's no shortage of reasons why Sequenom will thrive. I've highlighted three below.
Here at the Fool, we're all for looking at both the good and the bad sides of an investment. Once you're done with this article, you can read the case against the stock, weigh in with your own comments below, or rate Sequenom yourself in CAPS.
1. Significant upside potential
CAPS members believe that if Sequenom is able to successfully commercialize its Down syndrome test, it'll have big potential for growth, like Intuitive Surgical (Nasdaq: ISRG ) and other game-changers. While larger medical-related companies such as Gilead Sciences (Nasdaq: GILD ) , Amgen (Nasdaq: AMGN ) , and Bristol-Myers Squibb (NYSE: BMY ) are more stable, predictable investments, many investors are willing to shoulder the risk associated with small-cap Sequenom to take part in the big potential payback later.
2. More than a one-trick pony
Although Sequenom has a lot riding on its Down syndrome test -- the results of which pretty much drive the stock -- the company does have more to offer. It expects continued growth from its proprietary MassARRAY systems, and it recently launched its test for cystic fibrosis. With two more tests expected to launch early this year, some investors like Sequenom's potential to utilize its underlying science and strong intellectual property to expand beyond its current diagnostic tests.
3. Ducks in a row
Sequenom has made some sequential revenue progress in recent quarters, put a new management team in place, and is working to get through the setbacks to its Down syndrome test. While it has a ways to go to reach the size of biotech highfliers such as Illumina (Nasdaq: ILMN ) or Myriad Genetics (Nasdaq: MYGN ) , some CAPS members believe that if it continues to show progress, it could join this elite crowd.