Quick Win by the Algorithm: Luminex (NASDAQ: LMNX) New Treatments Drives Stock Price

“The rewards fro biotechnology are tremendous – to solve disease, eliminate poverty, age gracefully. It sounds so much cooler than Facebook.”

-George M. Church

(Source: Luminex)

Luminex Corporation (NASDAQ: LMNX) is a biotechnology company. The company develops, manufactures, and sells biological testing technology and products for the purpose of diagnostics, research, and pharmaceutical needs. Founded in 1995, the company currently has 896 employees.

On April 23rd, 2018, the I Know First Algorithm forecasted a bullish 3 months for LMNX. With a predictability of 0.21, and a signal of 23.66, the stock returned up to 51.56% in that time frame.

Well why did the company see such a vast increase in stock price? It’s because investors have confidence in upcoming treatments.

On May 7th, Luminex released their Q1 2018 financials. As evident from stock price, the results were promising. The company contributes the strong quarter to the growth of the molecular diagnostic franchise. There was growth in the sample to answer portfolio of 50% and blood culture and EP panel grew by 20% and 40%, respectively.

Although revenue decreased YoY, it was greater than their guidance assumption. The company is still confident that they will continue to grow revenue to their promised outcome; the company reassured that the their revenue guidance of $310 million to $316 million is still in tact. Zacks estimated the company would have an EPS of 22 cents per share, but the company beat that with 25 cents per share. 

Following the expectation beating quarter, stock price jumped.

(Source: Yahoo Finance)

On June 13th, Luminex announced that they began research for the Gastrointestinal Assay on the VERIGENE II System. The groundbreaking system allows the quick identification of pathogens responsible for deadly human diseases.

The CEO of Luminex stated that, “The VERIGENE II System is an excellent example of our commitment to innovation and to simplifying complexity in diagnostic testing. If the company makes it to the next stage of testing with this drug, stock price will soar. This new drug could be very effective, reaping benefits for the company.

In accordance with the I Know First bullish 3 month forecast, stock price rose 51.56%.