Bear Of The Day: Illumina (ILMN)

"This new and integrated bioinformatics solution provides a comprehensive, private, cloud-based data platform that empowers customers to manage, analyze, and explore large volumes of multi-genomic data in a secure, scalable, and flexible environment," was how the company described this new offering.

Connected Analytics will be available on January 28, and that may explain some of the recent push to new highs.

Another newer driver is the discovery of the world's greatest ETF innovator, Cathie Wood of ARK Invest.

Aside from the glaring fact that she sold all ILMN shares in Q4 of 2020, the surging interest in her ARK Genomics ETF (ARKG Quick Quote ARKG - Free Report) and ARK Innovation ETF (ARKK Quick Quote ARKK - Free Report) have helped send biotechnology stocks to all-time highs, from the CRISPR wing members like Editas Medicine (EDIT Quick Quote EDIT - Free Report) to the smaller NGS players like Invitae (NVTA Quick Quote NVTA - Free Report).

I also sold ILMN shares in Q4, even before I knew that ARK Invest did. We took 20% gains near $350 even as Wall Street analysts were lowering their estimates and price targets down below $300.

Now we all have egg on our portfolios as Illumina soars to new highs.

If you still hold ILMN shares, you may consider holding or trimming as lots of optimism about the recovery is already baked in. And I would wait for the estimates to stop going down, and start going back up, before adding new shares.

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Disclosure: I own shares of EDIT for the Zacks Healthcare Innovators portfolio.

Kevin Cook is a Senior Stock Strategist for Zacks Investment Research where he runs the more

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