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NeoGenomics: The Cancer Diagnostics Company No One Seems To Be Talking About

NeoGenomics is growing rapidly, but still flying under the radar for individual investors making it undervalued.

The Clarient acquisition will more than double the company's revenues.

Institutional and insider ownership is promising.

Introduction

When most investors are looking for growth companies they usually are looking for something flashy, that has a lot of hype about it or with a big name tied to it. For example, OPKO Health (NYSE:OPK) has Dr. Frost, Cancer Genetics Inc. (NASDAQ:CGIX) has John Pappajohn and TrovaGene (NASDAQ:TROV) has the only cancer monitoring system that can be assessed through urine. However, it is best to invest in a growth company or firm no one is talking about yet, which is why I was thrilled when I stumbled upon NeoGenomics (NASDAQ:NEO).

NeoGenomics issued its earnings report this morning and it blew away expectations. Usually, when a company's quarterly CC is eminent, there is a lot of buzz and speculation about earnings and revenue growth from the financial world. However, the investment world is oddly quiet on the matter. NEO message boards are silent and it seems investment blogs lack any curiosity in the company. After taking a quick look at NEO's balance sheet, I was very interested about the prospects of this company. I was baffled why no one was talking about it, so I decided to look into the company further to discover why. What I found is, what I believe, a rare investment opportunity.

Doubling Revenue Growth

NeoGenomics is in the business of cancer diagnostic testing, which is an incredibly competitive sector. Cancer diagnostic companies make money and generate revenue by selling sophisticated diagnostic cancer treatment tests to doctors and hospitals, and they receive compensation/reimbursement for insurance providers and Medicaid. Many companies in the sector are increasing their revenues through mergers and acquisitions. For example, see another article I wrote, on one of NEO's...


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