Biocept Inc. (NASDAQ: BIOC)
For the past month, movement in Biocept stock has had investors incredibly excited; and for good reason. In the past 30 days, the stock has grown by more than 37% and seems like it will continue on that path. So, today we’ll look into what Biocept does as a company, what we’ve seen from the stock recently, and what we can expect to see moving forward.
What Is Biocept
Why The Stock Is Climbing
This is where things get relatively interesting. The reason for the climb seems to be excitement based. For the last 30 days, BIOC has for the most part, traded on high volume. However, when you look outside of short term price fluctuations, there’s really not much good news to report…
- Net Income – In their most recent report, BIOC shows that they have underperformed in net income when compared to both the S&P 500 and the BioTech industry. In this report, Biocept showed that their net income decreased by 57%; which is rather significant.
- Earnings Per Share – Investors have seen a pretty serious decline with regard to EPS in the most recent quarter. In the last report, the company reported EPS of -$3.54 as compared to -$0.55 year over year. While the losses are expected to narrow in the next report, they are still expected to be around -$1.09 per share.
- Net Cash Flow – While BIOC had $0 net cash flow last year, this year they are down to -$3.22 billion!
- The Positive – The only big piece of positive news is that Biocept’s revenue growth far exceeds the industry average. While the industry average growth in revenue is 35.1%, year over year, BIOC has seen revenues climb by 294.7%.
Where I Think BIOC Is Headed From Here
While we’re likely to continue seeing climbs in the first place, investors will eventually start to become concerned about falling EPS, net income, and cash flow. For me, this doesn’t seem like a strong long term investment option. However, if you’re a day trader, ride those trends! The massive movement is likely to continue in the short run!
What Do You Think?
Do you think BIOC is likely to continue climbing? Why or why not? Let us know in the comments below!