Citron, led by Andrew Left, is famous for its short call reports. In an interesting turn of events, Left has expressed a strongly bullish position on Invitae (NVTA:
“I am long a lot,” Left told TheStreet, adding that he thinks NVTA could hit $100 a share two years from now. He also said it’s very possible that the company will be acquired before reaching that level.
“Genetic testing is a mega trend,” Left said. “[It] started with ‘Hey, it’s cute with the 23 and Me,’ but it goes a lot deeper than that. There’s so much more to it.”
He believes the total addressable market for genetic testing “is for everyone on Earth.” Left added that NVTA also has “a ‘big moat,’ and they’re ahead of everyone else. The more data they acquire, the better the testing becomes. Their product gets better with time.”
Left told TheStreet that he’s been long the stock for six or seven months and “I keep buying more.” But while Invitae’s stock price has already more than doubled so far in 2019, the stock popped Wednesday after word of Left’s position hit social media.
You can read the entire article here: https://www.thestreet.com/markets/invitae-shares-rise-after-…
You can read my deep dive on NVTA posted on this board in February here: https://discussion.fool.com/deep-dive-invitae-34140364.aspx
It’s been a wild ride for my position established in February, but overall–as of today–that position is up about 70%. If you do buy shares, you have to first, believe in the business model; second, believe in the “mega-trend” Left references above; and third, be able to stomach share price volatility over a long period of time to see if the promise of Invitae is realized.
That’s a lot of “believing.” So what I have done to date and will continue to do is to keep an eye on the key business metrics (defined in deep dive). If anything goes off the rails in a significant way, the bottom will drop out on this one, IMHO. Not a stock to buy and ignore, by any means…If you’re looking to build a position, you may want to consider the history of price volatility and figure out how to use it in your favor.