Pall Mampilly is pitching another teaser. As usual, the language he uses is exaggerative, but knowing Paul’s record we obviously want to know what the company he is pitching is. Paul Mampilly — if you are unfamiliar — runs Profits Unlimited a newsletter under the famous Bayan Hill Publishing’s name. This $97 a year newsletter has offered some fantastic insights into trades going on around the world. Readers are typically up a few digits and that always creates a little rush when Paul posts a new pick. Follow Paul on Medium.
This time Paul is claiming something dramatic. He is claiming to have the biggest stock pick of the year. His hints that it is a precision medicine company along with a few blogs that have been deciphering his words have led everyone to believe that he is talking about Myriad Genetics (MYGN). Myriad operates in the healthcare field and offers medical testing kits to test for cancers. Of course, this isn’t the only tests they offer, but for a long time, this has been their bread and butter.
We all know that early stage intervention is becoming more and more popular. Now that insurance is starting to cover the tests Myriad has shot up a bit in valuation. Since Paul Mampilly pitched the cryptic message, company prices have gone from $1.5 billion to $2.2 billion, which is quite a jump. Analysts expect 15 – 20 rises annually over the next few years, which isn’t the best thing ever.
Mampilly is betting on something else. Mampilly believes that insurance is going to start covering all tests and that MYGN is going to ramp up non-cancer testing. This has been true so far, recently Myriad released riskScore an algorithm for detecting breast cancer. Along with this, Myriad has been testing GeneSight and VectraDNA, both of which have a good chance at getting patented. One is for Alzheimers the other is for arthritis.
So if Paul is right, which he often is, Myriad may be set to rise in the future. Investors have been reacting to recent announcements, and cancer tests now only cover 1/3 of Myriads profits when they used to cover 100%. I’m going to keep an eye on this one, and so should you. Paul Mampilly has a strange habit of being right, a habit that keeps investors running to his newsletter over at Bayan Hill Publishing. Visit dailyreckoning.com to know more about Paul Mampilly.