Better Execution Leading To Better Valuation For GenMark

I thought GenMark Diagnostics (GNMK) was a high-risk/high-reward opportunity in mid-December, amidst a sharp downturn in the market overall and small-cap med-tech especially, and the shares have rebounded strongly (up almost 50%) since then. While a general sector and market recovery certainly helps, I think GenMark is also helping itself with more consistent management execution and a more credible path to key revenue breakpoints like $100 million, $200 million, and $400 million.

GenMark shares still look undervalued, but this is a competitive space and the company is somewhat late to the game. Although I think the qualities of the ePlex system will help GenMark win slots and drive usage, and I believe the shares are still undervalued below $8, this is still a stock with above-average risks.

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Better Execution Leading To Better Valuation For GenMark