Stock Alert for Complete Genomics Inc. (GNOM)
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    Stock Alert for Complete Genomics Inc. (GNOM)

    Complete Genomics Inc. (GNOM) is a life sciences company that has developed and commercialized an innovative DNA sequencing platform that it believes will become the preferred solution for complete human genome sequencing and analysis. The Complete Genomics Analysis Platform, or CGA™ Platform, combines the Company’s proprietary human genome sequencing technology with its advanced informatics and data management software.  GNOM offers this solution as an innovative, end-to-end, outsourced service and provide customers with data that is immediately ready to be used for genome-based research. Its CGA™ Service solution provides academic and biopharmaceutical researchers with complete human genomic data and analysis at an unprecedented quality, cost and scale. GNOM generated revenue of $9.4 million for fiscal 2010, which compares to revenue of $0.6 million in fiscal 2009.

    Share Statistics (13-Feb-11)   FY

    2009

    FY

    2010

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol GNOM Revenue, $Mn 0.62 9.39 1414.5% 4.16 4.18 0.5%
    Current price $4.66 Gross marg. -711.3% -111.9% -84.3% -44.5% -95.7% 115.1%
    52wk Range: $2.21-$18.55 Oper. margin -507.5% -498.4%
    Avg Vol (3m): 676,203 Net margin -5798.4% -614.4% -89.4% -491.8% -517.0% 5.1%
    Market Cap. 154.63M              
    Shares Outstanding 33.18M EPS, $ -386.56 -13.60 -96.5% -21.87 -0.65 -97.0%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of GNOM have gained 33.1% in the last five days and 62.9% in the last month.  Year-to-date, the stock is down 41.4%.

    Shares of GNOM spiked as much as 65% to reach an intraday high of $5.42 Monday, boosted by news the Company has entered into a deal with the Mayo Clinic’s Center for Individualized Medicine to provide large-scale genomic sequencing services.

    The Center for Individualized Medicine, which operates a comprehensive sequencing laboratory in its own Medical Genome Facility, determined that collaboration with GNOM could supplement the services available to its community of medical researchers, the release said. The terms of the deal provide for Mayo Clinic to send genetic material to Complete Genomics for sequencing and analysis. It will continue to operate and invest in its Medical Genome Facility.

    The financial details of the agreement were not revealed.

    “It is exciting to see a world-renowned healthcare organization like Mayo Clinic take the next step towards bringing high-quality whole genome sequencing data into the clinic. They clearly recognize its potential to personalize treatment options and improve the future quality of patient care,” commented Leroy Hood M.D., Ph.D., president of the Institute for Systems Biology and a member of GNOM’s scientific advisory board. “This is a big step toward the realization of personalized medicine.”

    According to the release, projects will be coordinated with the Center of Individualized Medicine’s Medical Genome Facility and will help expedite Mayo Clinic’s translational genomics-based programs. Through these initiatives, Mayo Clinic will develop best practices for using genetic information to guide patient care.

    Shares of GNOM added 41.6% to close Monday’s trade at $4.66.  Over the last 52 weeks, the stock has ranged from a low of $2.21 to a high of $18.55.  It is currently above  its 50-day moving average of $2.99 and below its 200-day moving average of $5.51.

    Source:

    http://www.completegenomics.com/news-events/press-releases/

    Financial Summary

    GNOM reported revenue of $4.2 million for the third quarter ended September 30, 2011, compared to $4.2 million in the third quarter of 2010. The Company recognized revenue for over 700 genomes compared to over 300 genomes recognized in the comparable quarter of the prior year.

    Costs and operating expenses were $25.0 million compared to $14.9 million in the third quarter of 2010.

    GNOM realized a net loss of $21.6 million compared to $20.5 million in the third quarter of 2010. The net loss for the latest period included an $8.8 million non-cash expense resulting from the accounting adjustment to market value of certain equity securities.

    The Company’s backlog as of September 30, 2011, was about $24 million and 4,800 genomes. It ended the third quarter of 2011 with $105.1 million in cash, cash equivalents and short-term investments.

    Source: http://www.completegenomics.com/news-events/press-releases/Complete-Genomics-Reports-Results-for-Third-Quarter-2011-133456158.html

    Financial Strength (13-Feb-2012)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 4.96 3.19 1.81 0.58
    Current Ratio (MRQ) 5.11 4.05 2.32 0.93
    LT Debt to Equity (MRQ) 17.94 25.40 26.55 170.45
    Total Debt to Equity (MRQ) 22.96 28.40 36.23 227.63
    Interest Coverage (TTM) -4.64 52.09 2.49 27.20

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    GNOM is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    The MACD for GNOM currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Feb13-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Illumina Inc. ILMN 54.05 6.57B 36.77 31.79 5.81 5.34
    Life Technologies Corp. LIFE 49.81 8.88B 12.45 11.45 2.32 2.24
    Biotechnology Median       17.61 n/a 8.99 n/a
    Complete Genomics Inc. GNOM 4.66 154.63M n/a n/a 7.72 4.49

    Source: Thomson Financial

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