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 Sequenom
So what: There's nothing quite like a biotech earnings report to completely confuse investors. Sequenom's earnings report this morning highlighted a 10% increase in sales to $14.9 million, with a net loss of $0.22 per share. Both of these results actually missed Wall Street's expectations for revenue of $16.5 million and a smaller loss of just $0.19 per share. Sequenom noted a 187% increase in its diagnostic services as the reason its sales rose by 10%, but pointed to rising costs as the reason for the widening loss.
Now what: Like I said, confusing! Today's reaction by shareholders seems to be in response to the good reception Sequenom has seen thus far for its new diagnostic products. While I agree with investor sentiment that this is good, I'm not quite sure how to correlate that to today's large move upward. I believe Sequenom has potential, but I can think of better areas for my money than a company that has continuously lost money throughout the years. Until Sequenom can turn a profit, I'd suggest looking elsewhere.
Craving more input? Start by add Sequenom to your free and personalized watchlist so you can keep up on the latest news with the company.