— Jeff Ward, Lehigh Valley News Briefs
OraSure made a presentation Thursday at an investment conference, but not a lot was said.
The Bethlehem-based maker of diagnostic kits has been going nowhere. Its shares (NASDAQ:OSUR) have been destroying investor wealth for years, as I’ve written about here. The closing price Friday was $3.65, down 7 cents.
So what could get this company going again? Another pandemic, along with lots more government money? Some kind of deal with a big company? Something internal?
Here’s a link to the webcast.
For years, the “investment thesis” as some people like to say, is this: Buy OraSure and lose money. Some lucky or psychic investors have been able to buy dips and sell high, but for the long term, it’s been bad news.
I didn’t hear anything at the Annual J.P. Morgan Healthcare Conference on Jan. 16 that indicated anything new, but I’m not a financial analyst. I’m just a guy who sees a stock that meanders down.
Could that change? Sure. It has before. The company isn’t very large (market capitalization $272 million) so some good news could give it a big boost.
What I did hear from OraSure was the usual: lots of jargon. I understand that what they do is complicated, but the corporate-ese is strong there.
At the conference, Chief Executive Officer Carrie Eglinton Manner talked about “non-invasive testing.” OraSure sells home tests for COVID-19 (InteliSwab) and HIV (OraQuick) and the CEO’s vision for the company is more of that.
“Our emphasis is on instrument-free” tests, she said at the conference. That means tests of saliva, and she mentioned urine as a new target for the company. That is interesting. People would rather get test results at home, and not have to go to a doctor or clinic or hospital.
She wants the company to add more tests. On the financial side, Eglinton Manner talked about returning to growth and improved margins.
As for jargon, some new and some old:
“Strategic partnership.” Are any of them not strategic? Is anything not deemed strategic these days? Has anybody ever announced a “non-strategic” partnership?
“Digital lateral flow.”
“Diving deeper.”
“An innovation engine.”
“Leverage innovation.”
“Rebalance and right-size.”
And an all-timer, “green shoots of growth.”
Eglinton Manner said the company has a strong balance sheet and can continue investing in growth.
Well, maybe.
“We think there’s a lot to like about OTI,” she said, using the acronym OraSure Technologies Inc. sometimes uses for itself.
Lehigh Valley News Briefs 