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Old 10-16-2012, 06:36 AM   #23
Location: Alaska

Join Date: Jan 2012
Posts: 49

Going back to your original question, the answer is NO. First off, you are better paying your house or buying one than any other stock. Second, Life is a huge company, sequencing is only a certain part of it. Third, Life's CEO is one of the worst person to execute plan and one of the best to oversell something.

Let's look at this race again, the race for market share (because there is a finite number of room for new sequencers, believe me). Where does this race take you... The manufacturing of instruments that do more, faster at a lower cost than the market can accept. A zero dollar machine at zero dollar cost that runs a genome in 0 seconds, sadly, will still not fit in a proper hospital pathology workflow (and please stop telling me Anderson or Mayo does it, that's not the global market).

Now take a look at the R&D spending for these new machines, take a look at the acquisition cost of Ion Torrent, the huge debt of solid. Now look at what their plan is: Make more machines at a lower cost using lower costs reagents for bigger results... That's a direct line to lower revenues... not your best business model.

Basically NGS at Life is in the red and growing slowly. The reality is that the cash cow is in good old forensic using capillary... We will never know because they do not want to publish NGS results only...

Life is barely keeping up in the single digit growth... that's pretty sad considering the massive cut backs and spending freeze they always have out there.

Long gone are the days of the biotech bubble my friend... this baby is saturated. I bought CRA at 12 and sold at 109$... what a joke that was...
Elcannibal is offline   Reply With Quote