Illumina (Nasdaq:ILMN) continues to be one of the most shorted stocks in the market. Ponder this Bear Case Scenario:
A great portion of revenues comes from academic and government sources. As government spending and research funds are curtailed expect revenues to drop. Private sector for profit spending needs to fill the void quickly.
Illumina must constantly innovate to stay ahead of competitors. This is a furious pace which eats up time and resources voraciously.
Semi-conductor chips are showing great promise in DNA sequence. The risk is that they will leap-frog optical detection technologies and quickly make Illumina’s offerings obsolete.
George Gutowski writes from a caveat emptor perspective.