This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Biotech Stock Mailbag: Sequenom

Stocks in this article: SQNMCVMAPPADNDNSNYARNAITMNCTIC

BOSTON ( TheStreet) -- You might not think it, but Sequenom (SQNM) and Pets.com have something in common.

Ten years ago, on March 10, 2000, the dot-com bubble burst. The tech-heavy Nasdaq peaked at 5,132 and then proceeded to slide downhill fast, taking with it the fortunes of investors who naively thought that anything with the letter "e" in front its name was a golden ticket.

The online pet supply "e-tailer" Pets.com came to mind as I was putting together this week's Biotech Stock Mailbag and reading through a dozen or so emails of reader comments about my coverage of Sequenom.

Mailbag

Pets.com was a very hot stock back in the early days of the aughts. (Remember its mascot, the talking sock puppet?) Never mind that it really didn't make much sense for pet owners to buy large bags of kitty litter and puppy chow online and wait days for delivery. Forget that Pets.com relied on discounted shipping to attract customers, and the company actually lost money on every order. Back in 2000, e-tailers were a hot ticket on Wall Street and investors were more than happy to overlook the obvious and fatal flaws in Pets.com's business plan.

Today, investors seem to have imbued Sequenom with some of that reckless disregard for reality. The troubled developer of non-invasive fetal gene tests, which blew up last year when data for a Down's Syndrome test had to be thrown out, is nonetheless enjoying a stock resurgence, with shares essentially doubling since last December. The stock closed Thursday at $8.01.

But as BNET's Jim Edwards summed it up nicely this week, Sequenom investors are "projecting their wildly optimistic expectations onto a real blank slate of a company."

I wonder how much angry email he got for that remark? I know my inbox filled up fast after my last Sequenom column in which I dissected Sequenom's fuzzy math being used by one analyst to justify her newly minted $16 price target.

"Gofigure" writes, "So, what are you saying here is? Sequenom will not have any viable test out this year? What is your proof of it? Are you shorting the stock?"

"Stockfundmanager" takes Jim Cramer and me to task for being "wrong about Sequenom since $2.55 up until the current $8.60 and you keep bashing instead of admitting you are wrong. You are becoming suspect of having a motive to your bashing... My price target is $25 versus Cramer's of $3. We will see who is right me or Cramer."

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs