I checked in with short seller Andrew Left of Citron Research today for his latest thoughts on Exact Sciences, the marketer of the Cologuard colon cancer screening test. Left expressed frustration his short bet against Exact Sciences has not worked out but he’s also not giving up.
Exact Sciences reported strong second-quarter revenue and Cologuard test volumes on Tuesday night, and revised financial guidance higher for the rest of the year. Exact Sciences shares are up 9 percent to $40.83 Wednesday. The stock has gained 28 percent since May 15, when Left issued his bearish report and appeared on CNBC to promote it.
The reason this is a flawed test because it will fail to detect a colon polyp with carcinoma in situ. This refers to a cancer that has not broken through the wall of the polyp and thus will not shed cancer cells into the stool. Cologuard will miss this cancer 100% of the time.
Left has changed his approach; the altruistic slant / public health risk of a flawed test apparently wasn’t getting any traction. I actually believed he cared. Wow, do I feel stupid.
Gotta admit the animated colon is cute, gives the cartoon bladder in Myrbetric a run for its money.
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