Many Big Winners Are Among  Rayno Diagnostics and Tools Stocks in 2014

Abaxis (ABAX) up 46%  A major “Point of Care” (POC) Dx Player in veterinary and human markets.

Exact Sciences (EXAS) up 135%  An emerging Dx player with non-invasive, DNA based test for colon cancer.

Illumina Inc. (ILMN) up 68%  Leading provider of DNA sequencing tools with new paradigm for diagnostics.

Pacific Bosciences (PACB) up 42.6% Emerging DNA sequencing player.

Sequenom (SQNM) up 53.4% Genetic analysis (SNPs) for prenatal testing  and other diseases. Spun off bioscience division.

Despite growth of only ~2% in the ~$55B clinical diagnostic market Worldwide in 2013 , new technologies such as sequencing and market niches like POC (Point of Care) and immunoassays provide revenue growth. LDTs (Lab Developed Tests) are also a growth area but the FDA will soon be issuing guidelines for these tests which have limited clinical diagnostic use.The veterinary market segment is also a growth area.

We will review all of our portfolio picks after the 2014 Financial Results. We made two new Dx picks in H2 2014: Foundation Medicine (FMI) at $25 and Pacific Biosciences of California (PACB) at $5.75.