GenMark's Share Price Isn't Reflecting The Improvements In The Business

GenMark (GNMK) is a relatively late entrant into a very competitive market, but the company’s ePlex multiplex molecular diagnostics system nevertheless addresses real issues for hospitals and small reference labs, and the overall market is still under-penetrated when it comes to multiplex systems. Management needs to make sure that the company continues to roll out new panels and expand the available test menu at a good pace, but the share price doesn’t seem to give much credit for the improvements in the business relative to a year ago.

Between cash flow and forward revenue, I believe GenMark shares should trade closer to $9 - $10 than $6. An ATM facility should get the company through to positive free cash flow, but it does remain to be seen how system placements will develop over the next 6 to 12 months. Although GenMark remains a riskier than average call, I believe the share price doesn’t reflect the full value of the business.

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GenMark's Share Price Isn't Reflecting The Improvements In The Business