Why Pacific Biosciences of California's Stock Is Up Again Today

By Brian FeroldiFool.com

What: Shares ofPacific Biosciences of California ,a next-generation gene sequencing company,are having another good day today as they were up more than 11% in late trading on heavier than normal volume.

So what:While there doesn't appear to be any particular news today driving the shares higher, Pacific Biosciences stock has been on an absolute tear since the company announced its new nucleic acid sequencing platform called "The Sequel System" which is based on its single molecule, real-timetechnology. Since making thatannouncementon September 30th shares have now more than doubled in price.

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Pacific Biosciences also got a nice bumpearlier this week after it showcased the new system at theAmerican Society of Human Geneticsannual meeting inBaltimore on October 6, so attendee's must have been impressed with the system.

The company is claiming that its newer system offers a lower price and smaller footprint while still providing all the benefits that its existing system had to offer.

For investors in the stock, the company is claiming that the new system will be cheaper to build, which should lead to margin expansion and help the company get toward probability quicker.

Now what: If this new system brings with it an uptick in orders and expanding margins at the same time than the future certainly could be finally looking bright for its long-term investors. Personally, I'm content to remain on the sidelines until we see how revenue and gross margins proceed after this new system is finally launched for sale. If it lives up to the promises that management are touting than the company could be a great buy even if shares continue to move higher from here. However, until we see signs of that happening I think its wise to be cautious with this stock for now.

The article Why Pacific Biosciences of California's Stock Is Up Again Today originally appeared on Fool.com.

Brian Feroldi has no position in any stocks mentioned. The Motley Fool recommends Pacific Biosciences of California. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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