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.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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