GXDX provides diagnostic services to community based
oncologists and hematologist treating blood, bone marrow and other cancers.
The business has been amazing for this company, fundamentals are strong and it seems like many
mutual funds want to load up on this stock. We have seen
stock ownership growth from 27 funds in last quarter to 42 funds in the most recent
quarter.
This sort of accumulation with a management owning 46% of
the shares outstanding is a solid confirmation of the future price gains.
GXDSX has had some incredible recent quarterly EPS growth of
200%, 388%, 540%, 999% and 325% during the past five quarters. In addition to current
growth we have EPS estimates for 2008 and 2009 for YOY growth of 18% and 4%
respectively.
The sales growth has outpaced earnings with growth of 417%, 340%, 264%, 166%, 165%, 134%, 137%, and
109% in past eight quarters. This kind of sales growth with earnings growth
will continue to find buyers on every pullback. I am also sure that by the end of
the year that mutual fund ownership will be over 100 funds.
For those of you who are interested in the P/E ratio, you can rest
assured that the 29 P/E ratio is in the middle of 5-year range (18-42).
With such stellar earnings, sales, ROE, and cash flow, the P/E could be 100
and I am still buying this stock.
This is by far one of the best IPO’s out there in the
medical community. The current price at 50 day moving average gives an excellent entry point for investors.
At the time
of publication, Joshua did not have a position in Genoptix Inc. (GXDX)
