WaferGen Bio-systems, Inc. (NASDAQ: WGBS)
WaferGen Bio-systems, Inc (WGBS), a developer of genome analysis technology and stem cell research company announced yesterday record revenue growth for its preliminary third quarter 2015 financial results.
Earnings and Outlook
“The Company expects total revenue for the third quarter of 2015 to be in the range of $1.9 million to $2.1 million, which would represent an increase of 52-68% when compared to the $1.3 million reported for the third quarter of 2014. This also represents a sequential increase of 18-30% compared to the $1.6 million generated in the second quarter of 2015.” Globe Newswire
WaferGen Bio-systems, Inc CEO Comments
“The third quarter will represent both our highest ever quarterly revenue, and the Company’s second consecutive quarter of revenue growth,” said Rollie Carlson, President and CEO of WaferGen. “With our base business now performing well, and the recent commercial launch of our ICELL8 Single-Cell System, we are well-positioned for meaningful growth in our business.” Globe Newswire
WGBS Technical Analysis
WGBS gapped up in price yesterday to $2.12, up from the prior day’s close of $1.52 which is a 39% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on September 23rd when the stock closed at $2.22. Taking a further look back on the chart, we can see the stock spiked off its 52 week low price of $0.97 on September 2nd. The rally reached highs of $3.47 on September 21st, or equivalent to a 257% increase. However, the stock could not hold the move up and gave most of the move back as it fell all the way to lows of $1.14 on October 2nd. As we can see, the stock has been very volatile for a small cap stock. The stock does have a low float of 3.46 million shares and traded on almost 6 times the normal daily trading volume. Both of these factors make the stock a prime candidate for the gap and go strategy. The stock did reach pre market highs of $2.29, meaning that it gave back $0.17 at the open, or equivalent to 7%. For trading purposes, my entry point would have been $2.20 with a possible add on at the pre market high of $2.29. I would be looking for a move through $2.50. My stop loss would have been $2.00 fearing anything below that and the stock would start to fill in the gap up.
WaferGen Bio-systems, Inc. develops, manufactures, and sells systems for gene expression quantification, genotyping, and stem cell research for the life sciences and pharmaceutical drug discovery industries in the United States, Canada, Europe, and the Asia Pacific. The company offers SmartChip Real-Time PCR system, which provides a suite of gene expression and genome analysis technologies enabling biomarker discovery and validation on a single platform with the sensitivity and accuracy of real-time polymerase chain reaction (PCR). Its SmartChip Real-Time PCR system consists of two instrumentation components comprising a SmartChip MultiSample NanoDispenser for applying sample, assay, and reaction mix to the SmartChip Panels; and a SmartChip Cycler for thermal cycling and collecting data from the real-time PCR assays. The company also provides SmartChip Target Enrichment system for performing a sample preparation step prior to targeted next-generation sequencing (NGS); and Apollo 324TM library preparation System, a walk-away automation platform that offers DNA, RNA-Seq, and ChIP-Seq library preparation kits for analysis on NGS platforms. The company focuses on providing its products to researchers who perform genetic analysis and cell biology, primarily at pharmaceutical and biotech companies, academic and private research centers, and diagnostics companies involved in biomarker discovery and genetic research. WaferGen Bio-systems, Inc. was founded in 2002 and is headquartered in Fremont, California. Yahoo Finance