Rosetta Genomics Ltd. (USA) (NASDAQ: ROSG)
Rosetta Genomics stock is having a rough day in the market today. However, it actually doesn’t look all that bad in my opinion. The reality is that we saw massive gains yesterday, and the drops today haven’t even come close to leveling those gains. With that said, today we’ll take a look at what happened with ROSG yesterday, what we’re seeing in the market today, and why the volatility really isn’t much to be concerned about for the long term investor.
Rosetta Genomics Announces CynoGen Acquisition
Yesterday was a huge day in the market for Rosetta Genomics after they announced that they would be acquiring CynoGen in a cash and stock deal. CynoGen (Doing business as PersonalizeDx) is a molecular diagnostics and service company. The company is growing fast and currently serves community-based pathologists, urologists, oncologists, and other laboratories across the United States. In a statement, the President and CEO of Rosetta Genomics had the following to say about the acquisition…
“The acquisition of PersonalizeDx will have wide ranging, positive financial, commercial, operational, and pipeline impact on Rosetta Genomics, and brings with it exceptional talent to complement the industry-leading team at Rosetta Genomics. The PersonalizeDx business is an excellent strategic and cultural fit, and we look forward to combining their assays and blomarkers with our current and future microRNA0-based and other assays. With the expected close of this transaction, we extend a warm welcome to our new collegues from PersonalizeDx,”
As a result of the acquisition, the company’s stock jumped from $2.97 per share to $3.30 per share yesterday.
Then We Have The ROSG Drop Today
Today however, things don’t seem to be moving in the same direction. As a matter of fact, the stock has fallen to $3.17 per share as of 1:50 today. So, what’s causing the drop? In my opinion, it’s day traders and investor emotions. The reality is that yesterday, the stock grew much faster than it should have. So, as the excitement dies down, the stock price is starting to correct. So, no, the ROSG didn’t make a bad decision, and their stock isn’t headed for a long term slump. Instead, we’re simply seeing a slight correction.
What We Can Expect Moving Forward
Rosetta Genomics is already a great company, but after news of this acquisition, I’ve become even more bullish on the stock. The reality is that both of these companies complement each other very well. So, the acquisition is like a match made in heaven designed to drive profits; and in my opinion, that has value.
What Do You Think?
Where do you think ROSG stock is headed and why? Let us know in the comments below!