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EXACT Sciences (EXAS) is geting tempting
Topics: Uncategorized, financial blogging, news and views, trade ideasLet me admit from the outset that I hate investing in pharma and biotech. I’m not a science guy, and the business model of many companies in these sectors perplexes me.
That said, I have added EXACT Sciences (Nasdaq:EXAS) to my watch list. According to the company, it “uses applied genomics to develop patient-friendly screening technologies for use in the detection of cancer.” I hope they paid their PR person well for that description, because it sure sounds a lot more glamorous than “our tests check poop for signs of colorectal cancer.”
Get trend analysis for EXAS from Ino.com
I’m not a buyer yet. Nor am I a fan of headlines that read “Exact’s losses widen amid revenue challenges.” However, I do like that EXACT is working with a $24.5 infusion from Genzyme, that EXACT is trying to upgrade its management, and that it continues to win new patents. Fundamentals look like they are improving.
Technically, this is an easy one. Quite obviously, EXACT is in a consolidating wedge. More likely than not, it will resolve to the upside, but if it breaks support at $.75, all bets are off.
DISCLOSURE: No position.
[...] The technical breakout I thought we might see in EXACT Sciences (EXAS) is now in full gear. EXACT shares are up about 70% since the last post, and over 300% off December lows. Technically, part of the bounce is simply a matter of seller exhaustion. But its a lot more than that. [...]
I bought 1500 shares awhile ago at $1 and now I am trying to justify buying more. Is there a study out or planned that will compare a group of patients screened for CR Cancer w/ their test and than all those patients colono-scoped to show non-inferiority?
@frank: I don’t know whether the study exists, and I’m not sure its important. The test is non-invasive (which means no discomfort and also no safety side effects) and less expensive, so I don’t think non-inferiority must be established for EXACT’s stool sample test to succeed.