Where I am At After Almost 4 Years

I started my MFI portfolio 2/28/06, coming up on 4 years. Take a peek at my chart... sadly back underwater again.


Obviously a little tough skiing recently. At 1/8/10 I was actually up 5.4%, now I am down 3.8%. That is pushing 10% and I avoided a bit of additional pain by selling QXM around $3.70 a week ago and now they're down to $2.45 (whew).

I did buy a new stock yesterday, GXDX, which seems like a mini Quest Diagnostics (which I owned a couple years ago). They are a blowing and going company, it was surprising to see them on the list. You can see they had a temporary (I hope) fall from grace:

PRICES

Date	Open	High	Low	Close	Volume	Adj Close*
28-Jan-10	30.29	31.05	30.26	30.95	374,400	30.95
27-Jan-10	30.18	30.61	29.86	30.18	379,600	30.18
26-Jan-10	30.75	30.89	29.10	30.41	1,801,700	30.41
25-Jan-10	33.64	34.01	32.41	32.60	399,100	32.60
22-Jan-10	34.07	34.51	33.50	33.56	170,100	33.56
21-Jan-10	34.81	35.04	33.66	34.16	217,500	34.16
20-Jan-10	35.00	35.26	34.12	34.90	199,900	34.90
19-Jan-10	35.39	35.72	34.97	35.06	169,300	35.06

But look at their guidance:

Performance Outlook

Recognizing the strength of our collection efforts and financial results in the third quarter, Genoptix expects revenues for the full-year 2009 of approximately $180 million with full-year gross margins of approximately 60%.

Operating margins for 2009 are expected to be in the mid- to high-twentieth percentile, with net income of approximately $29 million, up from prior estimates of approximately $25 million. Diluted EPS for the full-year 2009 is now expected to be approximately $1.60, increasing from a prior range of $1.40 to $1.45, on about 18.0 million shares. This assumes a tax rate of approximately 44%, down from initial estimations of 45%.

Based on continued infrastructure expansion and implementation of its strategic plan, the Company projects capital expenditures of $8.5 million for the full-year 2009, which includes approximately $4.5 million in maintenance capital. A planned laboratory expansion beginning this quarter is now expected to cost approximately $9.5 million, with approximately $4 million to be spent in 2009 and the remainder in the first half of 2010.

For 2010, revenues are expected to grow to approximately $235 million. The Company intends to provide more detailed guidance in February when reporting results for the fourth quarter and full-year 2009.

I mean look at the growth, 180m to 235m. They have an impeccable balance sheet. Here are their stats a couple of days ago when they came on the list:

		gxdx
+	Operating Income After Depreciation	48.64
-	Minority Interest - Income Account	-
=	Income for Calculation	48.64
	Diluted Shares Outstanding	17.965
	Share Price	30.18
+	Market Cap Calc	542.18
+	Preferred Capital	-
+	Debt in Current Liabilities	-
+	Long-Term Debt	-
	Cash and Short-Term Investments	137.79
-	Excess Cash	137.79
=	Enterprise Value	404.40
+	Property Plant and Equipment - Net	12.76
+	Receivables	23.53
+	Inventories	-
+	Other Current Assests	7.49
+	Working Cash	-
-	Accounts Payable	9.51
-	Current Liabilities - Other	8.98
=	Invested Capital	25.29
	Earnings Yield	12%
	ROIC	192%