Comment
0
Tweet
0
Print
RSS Feeds

Why Luminex Is Poised to Keep Plunging

Friday - 2/8/2013, 4:48pm  ET

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biological testing technologist Luminex has received an alarming one-star ranking.

With that in mind, let's take a closer look at Luminex and see what CAPS investors are saying about the stock right now.

Luminex facts

Headquarters (founded)

Austin, Texas (1995)

Market Cap

$730.6 million

Industry

Life sciences tools and services

Trailing-12-Month Revenue

$202.6 million

Management

CEO Patrick Balthrop Sr. (since 2004)
CFO Harriss Currie (since 2003)

Return on Equity (average, past 3 years)

4.4%

Cash/Debt

$56.4 million / $2.8 million

Competitors

Affymetrix
Life Technologies
Sequenom

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 14% of the 106 members who have rated Luminex believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those bears, All-Star bclan13, succinctly summed up the bear case for our community:

Other technologies are coming in and taking away more and more of where Luminex's performance envelope has a competitive advantage (lab geeks' "mid-plex"). I see particular pressures in genetic disease testing. ... Longer term, there is a stable business for Luminex in [Human Leukocyte Antigens ] testing (particularly the protein tests) but this is not going to provide double digit growth forever -- a requirement of a company with this kind of valuation.

If you want market-topping returns, you need to protect yourself from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit from the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

This article was originally published as Why Luminex Is Poised to Keep Plunging on Fool.com

Copyright © 2009 The Motley Fool, LLC. All rights reserved.