- Neogenomics performed excellently for shareholders between 2018 - early 2021, but since then things have begun to unravel at the company.
- The departure of long-time CEO Van Oort and appointment of Mark Mallon was a failure - Mallon's departure was announced last week, as Q1 and FY22 guidance was downgraded.
- Neogenomics is going to create losses in 2022, and its revenues could shrink for the first time in the decade.
- In this article I explain the situation, make the bull and bear cases, and highlight different aspects of performance.
- Ultimately, a vicious circle of rising losses, shrinking revenues, and issues at senior management makes me think that a $1.7bn market cap valuation may be too high for Neo. It may take an activist investor to effect real change.
For further details see:
Neogenomics: Poor Performance, CEO Departure Create Downward Share Price Spiral