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$19.09 -0.31 (-1.60%)
7/18/2008 4:00 PM

Quidel Corp (QDEL)

CAPS Rating:
*****

The Company is engaged in the development, manufacturing and marketing of rapid diagnostic solutions at the professional point-of-care in infectious diseases and reproductive health.

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Total Players

123 Outperforms
4 Underperforms
 

All-Stars

35 Outperforms
2 Underperforms
 

Wall Street

6 Outperforms
1 Underperforms
 

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Ticker Tags

Diagnostic Substances (53), Micro Cap (4824), Small Cap (1922)
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Quidel Corp At A Glance

Current Price: $19.09
Last Trade Time: 7/18/2008 4:00 PM
Open: $19.42
Previous Close: $19.40
Daily Range: $18.93 - $19.51
52-Week Range: $12.95 - $21.07
Volume: 223,221
Market Cap: $627.40M
P/E Ratio: 35.27
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Stock Trends

QDEL VS S&P 500 (SPY)

QDEL 12 month chart vs. S&P

News & Discussion Boards

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Top Bull Pitch

Recs

1

Quidel Corp (QDEL)

Avatar darksarab (23.62) Submitted: 1/27/08 11:39 PM

Healthcare needs have been trending towards more in office tests and treatments for quite a while. This is one of those rare cases where the demand for the comapany's products will be able to drive it no matter what the market is doing. This one is well positioned in a growing market with no end in ...More

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Recs

0

 (QDEL)

Avatar johnwoo88 (< 20) Submitted: 7/17/08 11:38 AM : Outperform Start Price: $18.85 QDEL Score: -2.24

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Recs

0

 (QDEL)

Avatar caustexx (84.58) Submitted: 7/07/08 6:25 PM : Outperform Start Price: $16.35 QDEL Score: 15.91

courtesy of stockboxfinancial:





The Short Story:





Quidel Corp. is a company that develops and manufactures rapid point of care testing devices to diagnose such things as influenza. Through generating large amounts of free cash flow the company has been able to substantially buy back stock while continuing to develop new products.





In Depth Analysis:





Quidel is one of those companies that I am just dying to own. They have excellent management, low capital expenditures, a large (and growing) net cash position, have competitive advantages, and are buying back stock.





For those of you who don’t know Quidel they manufacture point-of-care diagnostic tests. Doctors use point-of-care tests in order to diagnose a specific disease. If this sounds similar to the products made by companies like China Medical Technologies (CMED), well it is. There is a big difference however between Quidel and more traditional diagnostic applications: point-of-care tests do not require processing from a lab or laboratory equipment. This leads us right into the heart of Quidel’s business model. The company tries to engineer every product to live up to its “Quidel Value Build” criterion. This criterion revolves around “clinical validation” and “economic validation.” According to management clinical validation is “the enabling of rapid patient management decisions leading to improved treatment and outcomes.” Economic valuation is “the reduction of overall costs associated with patient testing emphasis upon critical reimbursement and payer performance criteria.” Quidel looks to produce products that perform better in clinical trials than alternatives, but are also cheaper as well. The company has been successful in this endeavor evinced by strong clinical performance and revenue growth of 20 percent over the last year. Since these tests are disposable, the company has a re-occurring revenue stream.





In the past, Quidel sold products mainly in America, some parts of Europe and Japan. This is all about to change as the company recently created a partnership with bioMerieux. bioMerieux has operations in over 160 countries and this should allow Quidel to penetrate many international markets. In addition to distribution, Quidel and bioMeriuex will co-develop many products in such areas as upper respiratory and sexually transmitted diseases.





This firm generates the majority of its revenue from influenza tests. In 2007 influenza tests accounted for 64 percent of revenue but Influenza is a fickle disease. Last year the season started seven weeks late in America and was one-third the normal strength in Japan. Since Quidel’s upper respiratory test for the flu has a shelf life of two years a weak influenza season could wreck havoc on the firm’s operations.





Management and CEO Caren Mason are extremely competent and passionate about the business. During the latest conference call Ms. Mason could hardly contain her excitement about the company’s new products R&D efforts. Also, in earnings press releases the company discloses the amount of stock compensation expense something that is extremely rare in corporate America today.





After backing out the companies large cash hoard Quidel is trading at 18.9 times free cash flow. Even though this is not a pricey valuation for a company of this quality, there is not a significant enough margin of safety to justify investment. However, management believed the company was undervalued earlier this year as they bought back a stock $6.6 million in stock (about 5 times stock compensation expense) at an average price of $14.33 a share. For now I find Quidel too pricey for my tastes, but I will be waiting for an opportunity in the future especially during this volatile market.





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Recs

0

 (QDEL)

Avatar maryandtommy (69.16) Submitted: 3/13/08 11:07 PM : Outperform Start Price: $14.86 QDEL Score: 33.53

The wave of the future in health care diagnostics with rapid point of care results, no wait for transit to a lab and culture growth, eliminating the need for f/u visits/calls for results/answers.

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Recs

0

 (QDEL)

Avatar thearistocrats (67.57) Submitted: 2/24/08 9:03 PM : Underperform Start Price: $16.58 QDEL Score: -22.14

Cramer pick that just lost it's mo

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Recs

0

 (QDEL)

Avatar DonewithCorpAmer (< 20) Submitted: 2/16/08 4:21 PM : Outperform Start Price: $17.60 QDEL Score: 16.25

Flu season is turning out to be more intense. Qdel makes the flu tests.

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Wall Street

Results 1 - 7 of 7  

picks per page. CHANGE

Top
Pick
Player NamePlayer RatingStart
Date
CallTime FrameStart
Price
Stock
Gain
S&P
Gain
ScorePitch
TrackJimCramer 82.55 02/15/08 02/15/08 Outperform 3W $15.97+19.54%-6.73%+26.26
TrackPacificGrow 85.90 01/16/08 01/16/08 Outperform NS $17.00+12.29%-7.97%+20.26
TrackLazardCapit 78.47 11/19/07 11/19/07 Outperform NS $17.84+7.01%-12.23%+19.23
TrackStifel 93.92 11/16/07 11/16/07 Outperform NS $18.05+5.76%-13.00%+18.76
TrackGaryBSmith 57.58 06/29/07 06/29/07 Outperform 3W $17.56+8.71%-16.21%+24.92
TrackCarisandCo 79.10 02/16/07 02/16/07 Outperform NS $11.83+61.37%-13.33%+74.70
TrackMatrix 89.88 08/29/06 08/29/06 Underperform NS $11.00+73.55%-3.40%-76.95

Results 1 - 7 of 7  

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