Author: Riddhi Ruparelia
Covestor model: Long-Term Growth
Disclosure: Long IRBT, GHDX
This month we are revisiting our investment thesis concerning three revolutionary long term trends we introduced in August 2011.
Genetics based diagnostic tests: Genomic Health (GHDX) has achieved early leadership in using genetics test in cancer related diagnostics. Genomic is now taking their breast cancer test franchise to international markets while introducing similar products for colon cancer screening in the US. We continue to hold GHDX for long term gains.
Another company in very similar business is Myriad Genetics (MYGN). Myriad’s colon cancer revenue is already reaching substantial size and it seems to be just the beginning. We recently added MYGN to our portfolio and intend to hold it for a long time.
Robotics: Since we last reviewed, iRobot’s (IRBT) business has undergone significant changes. However, the underlying theme remains strong. Due to uncertainty related to defense spending, iRobot’s defense related business has slowed down significantly. However, iRobot’s consumer robots business seems to be reaching tipping point.
While consumer robots continue to grow sales in international markets, iRobot’s domestic sales of consumer robots were stagnant over last two years. Not anymore. In the first quarter of 2012, iRobot’s consumer robots sales increased by 15% in the US. We believe this story will only get better from here and continue to hold iRobot for long term.
3D Printing: Stratasys (SSYS) and 3D Systems (DDD) continued to grow business and demonstrate increased traction of their technology. Stratasys decided to merge with Israel-based Objet and retained the Stratasys name for combined company. With this move, combined company Stratasys becomes even stronger. With their continued growth in the business, we remain long term holder of both these stocks.
Happy Investing!
