Our Stock of the Week is Cancer Genetics (CGIX) is a repeat. CGIX provides diagnostic tests and services used for the treatment of cancer. This presentation on April 24, 2017 provides further details about the companies business.
In its most recent earnings report the company grew revenues 32% and reduced operating expenses. Revenues were slightly lower than expected but eps better than estimated.
The President and Chief Executive Officer, Panna Sharma, commented that the business continues to scale, and shows "tremendous demand" going into 2017. "CGI is now working with 9 of the top 10 pharma and biotech companies and has made significant gains in our clinical market share due to our expansion into solid tumors, hereditary cancers and immuno-oncology. All categories of our business showed improvement throughout 2016 as we fully integrated our acquisitions, generated greater operating leverage across CGI, and increased market share. As we integrated our U.S. sites, we achieved record margins during Q4 which we expect will continue rising as we grow revenue and capabilities. We have also started a major initiative to make our information and molecular data more valuable to both our biopharma customers and healthcare systems. We expect that this big-data and artificial intelligence initiative will further expand our margins while increasing our value to the oncology ecosystem."
Technically the stock pulled back to support at around $3.50 for the second time this year and is now trying to turn back up on increased volume. With the positive news and strong guidance, we believe it can work back to the $4.50 level and gain further momentum.
As always, we will not chase the open, but would look for a strong close on increased volume to start to add shares.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength, and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark Investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. ("SAMI"), directly or indirectly, controlled investment and/or trading accounts containing positions in CGIX. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
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