UPDATE 2:11 p.m.- shares moving higher as people dispute the article’s claims.
Shares of Exact Sciences (NASDAQ: EXAS) moved to near the flat line after being up sharply on the day. A Seeking Alpha article about its upcoming colon cancer text cast doubt on its viability.
The beginning of the article reads:
Exact Sciences (EXAS or the “Company”) is the Wisconsin-based company behind the overhyped soon to fail colon cancer screening test known as Cologuard. As such, we believe that the fair value for this persistently cash flow negative, value-destroying Company is at best equal to the value of the cash on its balance sheet, or less than $3 per share. We will demonstrate over the course of this series why we feel that the stock should be aggressively sold or shorted.
It goes on to say that in order for its new test, called Cologuard, to be successful, it will have to prove that the test is effective, gain insurance coverage, convince doctors to prescribe the test, and make the test simple enough that patients will use it.
The article’s author believes the company will fail at each task.
This is the first of a five part article on the company.
Disclosure: At the time of this writing, the author had no position in the company mentioned.