Q: Moley Fool just posted the following comments on FLGT. I was wondering if you could comment on it and explain why you think it is or is not a good investment.
"Fulgent pivoted and became a provider of COVID tests, thus allowing it to load the balance sheet with cash. And while the COVID testing business has evaporated, that cash-heavy balance sheet remains.
There are two numbers that underlie Fulgent’s appearance in this BBN collection:
Current net cash/share = $27.70
Current stock price = $15.50
Yes, Fools, Fulgent currently sports an enterprise value of $(352) million or $(11.43) per share, and that is indicative of a company that is either (and potentially both) a fraud or burning through that cash pile at a rapid rate. We see no indication that Fulgent is a fraud, and we certainly don’t see any indication that the cash pile is in rapid decline. Heck, it’s barely in decline at all, with free cash flow of just $(19.2) million in 2024.
We’re running long here, and for more detail, I’ll point you to the recent forum post on the quarter and year that was. And to be clear, this is no Danaher. Fulgent definitely leans towards the speculative side of the industry. But my goodness, the business almost certainly isn’t worthless. Let alone the negative value the market has currently ascribed.
The glory days of the pandemic for this company aren’t likely to return any time soon, but even if it trades to its cash value, you’re looking at a pretty decent return from today’s price."
Many thanks
Scott
"Fulgent pivoted and became a provider of COVID tests, thus allowing it to load the balance sheet with cash. And while the COVID testing business has evaporated, that cash-heavy balance sheet remains.
There are two numbers that underlie Fulgent’s appearance in this BBN collection:
Current net cash/share = $27.70
Current stock price = $15.50
Yes, Fools, Fulgent currently sports an enterprise value of $(352) million or $(11.43) per share, and that is indicative of a company that is either (and potentially both) a fraud or burning through that cash pile at a rapid rate. We see no indication that Fulgent is a fraud, and we certainly don’t see any indication that the cash pile is in rapid decline. Heck, it’s barely in decline at all, with free cash flow of just $(19.2) million in 2024.
We’re running long here, and for more detail, I’ll point you to the recent forum post on the quarter and year that was. And to be clear, this is no Danaher. Fulgent definitely leans towards the speculative side of the industry. But my goodness, the business almost certainly isn’t worthless. Let alone the negative value the market has currently ascribed.
The glory days of the pandemic for this company aren’t likely to return any time soon, but even if it trades to its cash value, you’re looking at a pretty decent return from today’s price."
Many thanks
Scott
Q: I would like your opinion on Fulgent and its potentiel .Is it a buy,hold or sell?
Thanks !
Thanks !
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Align Technology Inc. (ALGN)
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Fulgent Genetics Inc. (FLGT)
Q: Hi 5i,
Looking to sell my position in FLGT for a loss in my non-reg account. Potentially looking to replace FLGT with PFE to maintain US/Health care exposure. Would appreciate you thoughts and if you believe there are better US health care stocks to consider.
Thank you in advance,
Greg C.
Looking to sell my position in FLGT for a loss in my non-reg account. Potentially looking to replace FLGT with PFE to maintain US/Health care exposure. Would appreciate you thoughts and if you believe there are better US health care stocks to consider.
Thank you in advance,
Greg C.