Product is scheduled for release in 2009, big money managers already moving in.
Sequenom (NASDAQ: SQNM, Stock Forum), a genetics and molecular diagnostic company, made a big run up at the end of the week, rising 15% to a 52-week high of $15.25. That is about four times its low for the period. On June 3, the firm announced that its prenatal Down syndrome drug test was a success.
The product is scheduled to launch next year. SEC filings showed some big money managers are starting to move into the stock. Unlike many biotechs, the company already has modest revenue. Last quarter, SQNM brought in sales of $10.6 million and had an operating loss of $8.2 million.
Sequenom has about $35 million in cash, about a year's supply. Depending on how long it takes for the company to get its new test system to market, it may have to raise more cash. That puts a stock that is up over 60% this month at risk.
Stockhouse Conflict and Disclosure Policy:
Stockgroup Media Inc., owners and operators of Stockhouse.com, has established the following rules to ensure that there is no appearance of impropriety on the part of any Stockhouse Editorial writers ("Writers"). The content of Stockhouse Editorial articles (the "Articles") are the opinion of the Writer and any reliance on the content of these articles is at your sole risk. Our Writers are not registered investment advisors. You should not make any kind of investment decision in relation to Articles or stocks discussed in them without obtaining advice from a registered investment advisor.
Facts relied upon by our Writers are generally provided by the subject companies or gathered by our Writers from other public and/or private sources. These facts may be in error and if so, the opinions of our Writers may be materially different.
Writers may own, buy, or sell shares in public companies mentioned in their Articles, but in the Article they must prominently state their ownership position. Thus, a conflict may exist. Writers are not permitted to write Articles that attempt to benefit persons connected to the Writer, such as family or friends, except where disclosure is made in the same way as if the Writer him/herself owns stock.
Writers cannot solicit, accept, or agree to receive anything of value given or paid with the intent of influencing their Articles.
Stockhouse notifies each Writer about these rules, and we rely on the integrity of our Writers to ensure that our rules are followed.
