From cabot Wealth Advisory 8/19/13 Sign up for free Cabot Wealth Advisory
And now it’s time for today’s Revolutionary Stock, Quidel Corp. (QDEL).
Quidel is unusual in that it hasn’t been recommended by a Cabot advisory service since it appeared in Cabot Top Ten Trader in late 2005. It’s appearing here today because one of the Cabot editors nominated it (see here for how stocks qualified for this list of 10 revolutionary stocks), but that editor hasn’t been able to recommended it because the stock doesn’t fit the parameters of that editor’s investment advisory.
Yet it has a good story!
Quidel is a mid-sized medical company specializing in rapid-detection tests for numerous diseases or condition states, including influenza, respiratory syncytial virus (RSV), fecal occult blood, Strep A, pregnancy, bacterial vaginosis, infectious mononucleosis, H. pylori, Graves' Disease osteoporosis and Chlamydia. Obviously, these are mass-market conditions where there’s great demand for faster, cost-effective detection.
Quidel’s major brand name is QuickVue; its minor brands are D3 Direct Detection, Thyretain, Sofia and AmpliVue. QuickVue in particular has excellent name recognition domestically and is getting increasing penetration internationally as well. At the moment, international revenues account for 14% of the company’s revenues.
And research continues. The company is developing a continuum of diagnostic solutions from advanced lateral-flow and direct fluorescent antibody to molecular diagnostic tests. And from time to time Quidel buys its way into important technology. In the quarter just finished, for example, Quidel acquired Biohelix, with which it had already collaborated in developing “a number of hand-held, disposable molecular assays using BioHelix's proprietary isothermal Helicase Dependent Amplification (HDA) technology.”
In the long run, there’s little doubt this acquisition will pay off. That’s because Quidel is no flash-in-the pan; this company has a long solid history of capable management. Not every quarter brings growth; in fact the second quarter of 2013 saw revenues decline 4%. But the long-term trend is clearly up. The company has been profitable every year of the past decade. And the stock’s chart is modestly positive as well.
That last quarterly report did kick off a mild wave of selling, which coincided with the broad market’s pullback, so the stock is now well below its 50-day moving average, looking for support between 24 and 25.
If you like the story, you could buy some here. For more information, click here.
|Quidel Corp. (QDEL)
10165 McKellar Court
San Diego, CA 92121
|Index Membership: N/A
Industry: Diagnostic Substances
Full Time Employees: 514