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Option1307 (29.72)

You should be buying Genoptix (GXDX) now!

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May 07, 2010 – Comments (9) | RELATED TICKERS: GXDX.DL

Wall Strret still has their panties in a bundle after yeterday's irrational (read: criminal) behavior and is offering up a very nice entry point into a solid compnay.

GXDX missed analyst's earnings estimates today, but still maintained it's own guidance for the year. So retarded wall street is upset b/c GXDX is aiming for these "small"  yearly numbers:

Revenue growth: ~30%

Profit (EPS) growth ~8%

(All based on low end estimates from GXDX)

These numbers are solid any way you look at it. Today's 20% drop presents an excellent buying opportunity. So there you have it Fools, get on it!

 

btw I GXDX and may scoop up some more.

 

 

9 Comments – Post Your Own

#1) On May 07, 2010 at 10:21 AM, Option1307 (29.72) wrote:

Oops, edit fxn!

Should read:

btw I own GXDX and may scoop up some more in the coming days.

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#2) On May 07, 2010 at 12:46 PM, Newmanium79 (< 20) wrote:

interesting.....I looked at GXDX a few months ago but it had run up, this may be a good point of entry...

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#3) On May 07, 2010 at 1:11 PM, Option1307 (29.72) wrote:

Depending on how the market shakes out, I's say there will be an excellent buying opportunity in the next few days to pick up a solidly profitable company on the cheap!

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#4) On May 07, 2010 at 3:51 PM, djshagggyd (72.66) wrote:

Hey Option,

Haven't had a chance to interact much on here lately... excited to have some free-time today!

Anyway...

Wow, I got lucky on this one! I bought GXDX last year for 27.75 and 3 days ago I sold out all my shares at 38.03. It's not very often I enjoy such good timing... so I'm kind of excited.

I still feel like Genoptix is a great company though, and I'm definitely considering getting back in at this new (seemingly outrageous) low price.

What do you suppose the next year looks like for GXDX? I heard there are concerns about inside ownership... but haven't had time to fully research it. Have you heard anything about that? If so, does it concern you at all?

It's certainly hard to argue with their revenue growth over the last few years...

Hope you have a great weekend!

~djshagggyd

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#5) On May 07, 2010 at 10:47 PM, Option1307 (29.72) wrote:

djshagggyd

Hope all is going well man.

One of the most common criticisms out there about GXDX is the insider selling that has occurred and still is occuring. However, the reason for this selling is simple really. If you look at the history of GXDX they recently went public in the fall of 2007, ~2.5 yrs. ago. Thus the recent insider selling is actually expected as it is from the investment bankers/underwritter/etc. who brought the company to market. After a cetain period of time it is expected for them to take profits. That is the whole point and incentive for the company/etc. to help GXDX IPO.Thus, IMO the selling recently is not really anything to worry about.

I still like GXDX long term from here for many reasons. They have a desirable product that is essentially recession proof, solidly profitable company, with growing revenue and profit. 

Today they got slaughtered simply b/c the missed the analysts earnings estimates, which were high to begin with, even though they still were hugely profitable. Furthermore, the company reaffirmed it's own guidance for the full year 2010.

So, IMO I see no reason not to scoop up some GXDX at these levels. If the market tanks in the short term, which it might, GXDX will follow suit, but long term here 5 yrs. out, this is a buy for sure! I likealy will pick up more shares in the near term at these fantastic levels!

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#6) On May 07, 2010 at 10:53 PM, YodaFund (< 20) wrote:

I am slightly antsy at the fact that they said something to the effect of their costs increasing and some of their functions being less in demand...

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#7) On May 07, 2010 at 11:50 PM, Option1307 (29.72) wrote:

they said something to the effect of their costs increasing

Yes you are correct, they have mentioned several times that their costs will be increasing for 2010, but not necesarily in a "bad" way. As part of their effort to expand their capacity and grow sales their are going to incur more expenses this year. Hiring people costs money etc.

However, the important thing to keep in focus is that even with their increased capital expenditures as they prepare for increasing sales, they are still projecting to increase their yr. over yr. profit by ~8-10% in 2010. That's not really something to fault them for, in fact, job well done in my book.

I strongly like GXDX for the next 5 years + and the recent fall presents a seriously good buying opportunity.

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#8) On May 10, 2010 at 2:15 AM, djshagggyd (72.66) wrote:

Thanks Option! All great thoughts/points.

This week I'm trying to decide between continuing to DCA on TNDM (started at about $16)... or if I should switch it up and pick-up some fresh shares of GXDX. 

I think both are "safe" and Foolish long-term picks. Any thoughts? Right now, I think I'm leaning towards GXDX...

Hope you had a good weekend!

~djshagggyd 

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#9) On May 10, 2010 at 12:17 PM, djshagggyd (72.66) wrote:

I couldn't resist... after today's big market jump, I adjusted my holdings and reacquired some GXDX. I love the fact that I sold out  so recently, and now I'm already back in. It somehow feels illogical... even Foolish!.. but good!

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