Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
The stock market was back open for business on Tuesday, but judging from the day's muted movements, it seemed as though many investors didn't bother coming back. Yet even though markets were mixed, with the Dow falling but broader market averages on the rise, Myriad Genetics (MYGN 5.69%), Chindex International (NASDAQ: CHDX), and JA Solar (NASDAQ: JASO) all had large gains today, as positive news on a number of different fronts lifted their shares.
Myriad Genetics rose 11% after the genetics specialist published data in the Journal of Urology pointing to the predictive capability of its Prolaris molecular diagnostic test in patients being tested for prostate cancer. As a greater number of treatment options become available for cancer and other diseases, tests like Prolaris will become increasingly important in order to guide patients to the best possible options for their particular condition. The news adds to bullish moves from Myriad stock lately, as investors look beyond the high-flying biotech industry to find other interesting ways to profit from health-care plays.
Chindex climbed 13% after the Chinese health-services company said it would allow a consortium consisting of CEO Roberta Lipson and two companies to buy it out for $369 million. The price of $19.50 represents a nearly 14% premium from Friday's close, and given that the stock trades at an appropriate discount for a quick due-diligence period, it appears that shareholders aren't holding out for more. The move is just the latest in a series of buyouts that appear to take advantage of investor reluctance to own Chinese small-cap stocks, as investors remember all too well some of the other companies that have turned out to be fraudulent money-losers.
JA Solar also jumped 13% as the company announced this morning that its multi-crystalline silicon solar cells had climbed above the 19% mark in terms of conversion efficiency. Competition among solar firms has been fierce with respect to efficiency, which is one of the best ways that companies can demonstrate a competitive advantage over their rivals in what has largely become a commodity business. The new solar cells won't be available for commercial production until the second half of the year, but as solar costs generally keep coming down, investors will want to look at both JA Solar as well as residential-solar sellers SolarCity (SCTY.DL) and its rivals for greater growth potential.