Biotech Values

[apljack]

NGNM: Q3 revenues come in at record levels. Coverage initiated by Zach's with an "Outperform" rating and $3 target.

I'm going to violate my own self-imposed rule about posting on NGNM only biannually. The Q3 numbers are the best ever, beat for the second quarter in a row, and the PR contains several items that I have been waiting for, particularly the announcement of a lab expansion to handle the increased volume. This expansion is through internal means (read: no dilution from a purchase of an independent lab). The co. announces that they are ready to launch a record no. of new genetics tests, although details of what they are won't be discussed until today's CC.


http://finance.yahoo.com/news/NeoGenomics-Reports-Third-prnews-486242757.html?x=0&.v=1

Also, Zach's came out yesterday with coverage initiation. My takeaway from them includes their observation that NGNM is currently valued at 1X annual revenue, a steep discount to the industry. Zach's indicates they expect $100+ annual revenue and 17c/share profit by 2015 (I think both of these are low ball estimates and think that they will still announce the purchase of an independent lab sometime in the next year with minimal dilation):

http://finance.yahoo.com/news/NGNM-initiating-coverage-with-zacks-2412925151.html?x=0&.v=1

aj