Illumina, Inc. (ILMN)

Harmonia

Genetic Mapping

The PE is well into the nose bleed zone, while insider are very active sellers. Any slight misses or advances by competitors will cause decent size decline.

ILMN is making a strong push for 100 gigabyte runs by 12/31/09 and is consistently hitting 50 gigabyte runs in labs around the globe. Amazingly high throughput will result in faster and more efficient research runs leading to sooner commerical and pharma application - which means more market penetration and higher earnings.

best of bread, moves the goal posts on medical treatment

This stock is poised for a run...strong growth will create demand and as more money comes back into the market this stock will see a run up.

develops next-generation tools for large scale analysis of genetic variation and function, for improving drugs and therapies, customizing diagnoses and treatment, and curing disease.

Managed to increase revenues despite a difficult economy. Consumable drug revenues increased 76%. The last quarter represented the 30th consecutive quarter of revenue growth.

Growing high-margined consumable pull-through, improved operating leverage, and transitioning of manufacturing to Singapore shows that they will more then likely continue to grow Revenue in the coming years.

I work in neuroscience/genetic research. And let me tell you - the whole scientific community is dancing in the streets over the stimulus funds that were given to NIH. Currently NIH is offering grants of up to $2million that are dedicated to equipment and infrastructure. Which means that over the next two years, companies that make biological/genetic/laboratory equipment are going to be showing exorbitant growth. I don't know about long-term perspectives on any of these companies, but for the next two years, they're gold.

ILMN, AFFX, LIFE - I'm way long on all three.

Stimulus package money is going strait into their coffers.

a biotech on the cusp of rapid earnings growth and a very bright future. Get on board with ILMN now.

GENOMICS!!!!!!!

earnings

NIH stimulis will pump money into equipment investments.

sequencing - stimulus pkg -

I just came out of a fascinating lecture at Harvard on genome wide association studies--. There is a revolution going on that most people are completely unaware of with huge potential for identifying targets for drugs...they have computers crunching data 24 hours a day looking for associations between genes and human health. Nearly all the presentations I've seen on genetics here have used Illumina's products. Very exciting times.

Illumina is the current market leader in DNA sequencing and SNP detection. As more and more Universities and Institutes start buying its products, Illumina's revenue will continue its exponential growth for the next few years.

Gene research is the wave of the future. It will be a foundation for all medical research into disease, cancer, diabetes, etc. It even has growing foundations in athletics. Solid company in a small market in a new break through area. However, there is always the chance, that the public just does not catch on and buy into it.

I work in the field of microarray analysis. Illumina data formats are much harder to process than Affymetrix formats, but from what I've seen in adoption and better signal fidelity, I think they will start to take away significant market share. Still not sure that microarrays will ever hit mainstream health care, but there's lots of money to be made from research.

Biotech is in an infancy like electronics in the 60's, before lithography based transistors. The seeds of the 60's didn't began their most aggressive sprout in the 80's & 90's, but still made some money before the 80's.

The genome is the transistor, and its revolution will be greater. The cost masters of the genome will fuel the revolution. AFFX yesterday and ILMN today.

1 Genome costs:

$300Million, 2003

$1Million, 2007

$60k 2008 (Illumina)

$10k now (Applied Biosystems)

$5k spring 2009 (Complete Genomics)

The technology has landed, and its decoding is the next step. Meanwhile, lots of genome sequences will be sold. For some reason the PE ratio is always strange on this stock, but looking at the books:

Net Income

Dec07 -$4.05M, Mar08 +$13.43, Jun08 +$15.4, Sep08 -$7.29

#shares 119Million

PE = 6.8???

Crazy?

Of course, their success will be contingent on finding a <$10k solution.