Tag - Ghdx

This week, a newsletter advisor examines Genomic Health, Inc. (Nasdaq: GHDX), a speculative play on a developing new science and its application in breast cancer treatment.

"The era of personalized medicine is arriving; this will allow physicians to select a therapy based on the genetic characteristics of a particular patient," says Dave Dyer, of the Dave Dyer Newsletter.

Genomic Health, Dyer explains, is one of the first companies to provide both "a successful product and an investment opportunity." He says its current product, Oncotype DX, predicts the likelihood of breast cancer recurrence and the likelihood of chemotherapy benefit in early-stage breast cancer patients.

"For 70% of people with early stage breast cancer, minimally invasive surgery and radiation is all that is needed. The other 30% have a more aggressive type of cancer and would benefit from also receiving chemotherapy," Dyer says. "An objective, quantifiable test based on the genetic characteristics of a specific patient can determine with very high probability which group a patient belongs to."

Dyer says the firm's product is backed by extensive clinical testing, and that insurance companies and Medicare are willing to pay for it—their management seems to understand that they are running a business, not an academic institution.

"It is easy to understand why a patient facing the tough choices around chemotherapy would want this information. The side effects of chemotherapy can be extremely uncomfortable, but the side effect of not getting it when you need it can be death," he says.

The Russell 2000 (NYSE: IWM) has trimmed its earlier gains and slipped into the red in midday trading, while the Dow Jones Industrial Average (INDU) is holding on to slim gains. At 1:44 p.m. ET, the small-cap index had shed 0.45 points, or 0.06%, to 809.63. The Dow had risen 43.82 points, or 0.32%, to 13,610.79.

Stocks have lost their momentum this afternoon, which came following news of strong third-quarter earnings.

Apple Inc. (Nasdaq: AAPL) set the bullish tone after the close on Monday when it reported a 67% increase in third-quarter revenue, partially driven by strong demand for Macintosh computers.

Also contributing were credit card issuer American Express Co. (NYSE: AXP), which reported before the opening that third-quarter profit rose 10%, and telecommunications giant AT&T Inc. (NYSE: T), which announced that its third-quarter net income increased 41% due to its acquisition of BellSouth Corp.

Futures were pointing north and all indices opened in positive territory. But the enthusiasm from the morning’s earnings reports started to wane around noon, with the bears gaining strength after retailer Target Corp. (NYSE: TGT) lowered its same-store sales forecast for October and Wal-Mart Stores Inc. (NYSE: WMT) said that it now plans less capital expenditures in fiscal 2007 compared with a previous forecast made in June.

Waste Industries USA, Inc. (Nasdaq: WWIN), Columbus McKinnon Corp. (Nasdaq: CMCO) and EDAC Technologies Corp. (Nasdaq: EDAC) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

The Russell 2000 small cap index has risen above its record close level this morning.  Among specific small stocks, shares of IsoTis, Inc. (Nasdaq: ISOT) are gaining on news the company has prolonged relations with its supplier, while Genomic Health, Inc. (Nasdaq: GHDX) said it expects more than $43 million from the public offering of its stock.

At 11:33 a.m. ET the Russell 2000 had added 1.54 points, or 0.18%, to 835.19.  Its May 9 record close was 834.77.  The Dow Jones Industrial Average was up 4.71 points, or 0.03%, to 13,547.59.

The following are the most actively traded companies in pre-market trading among those with market capitalizations under $500 million: