The turmoil in the markets makes it too easy to justify selling any stock these days. Yet, while panic never helps investors, it's still a good idea to play devil's advocate with investments.
Consider genetic diagnostics firm Sequenom
Here at the Motley Fool, we like to consider both the good and bad sides of an investment, so in this article, so I'm highlighting three of the main bearish arguments on Sequenom today. Be sure to read the bullish case, as well, and then weigh in with your own comments below, or rate Sequenom in CAPS.
1. Legal mess
Due to ongoing litigation, investigations and legal expenses regarding the mishandling of clinical data for its prized prenatal Down syndrome test, Sequenom recently said it won't be offering any guidance for the next couple of quarters. That move leaves investors to take a shot in the dark about where its financials are headed. While companies like Mahindra Satyam
2. Short cash string
Unlike larger peers such as Gilead Sciences
3. It's a gamble
Even many of the CAPS members who think that Sequenom will outperform the market recognize that their pick is a gamble more than an investment. Sequenom's stock has been largely driven by potential, similar to other biotech players Onyx Pharmaceuticals
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Fool contributor Dave Mock votes three to be the number of the day. He owns no shares of companies mentioned here. Exelixis is a Rule Breakers selection. The Fool owns shares of Exelixis. The Fool's disclosure policy sheepishly admits to running up a four-figure cell phone bill text voting for American Idol.