Myriad Genetics Stock vs. Invitae Stock

If you stick your neck out and make a long-term call on a stock that turns out to be right, expect to hear nothing but crickets years later when you’re proven right. If your call turns out to be wrong, people will be lining up around the block to point out what an idiotic buffoon you are. That’s human nature man, and it’s partly explained by the concept of loss aversion – people feel the pain of a loss twice as much as the joy of a gain.

One man who should be recognized for making a good call is Maxx Chatsko over at Motley Fool who wrote a September 2016 piece warning investors in Myriad Genetics Inc. (MYGN) about a small up-and-coming test firm, Invitae (NVTA). He warned that competition was increasing, particularly, with the arrival of Invitae.

Chief among the antagonists is Invitae, a tiny $240 million company that posted just $5.6 million in revenue in the most recent quarter. Considering the $186 million in quarterly sales Myriad Genetics raked in, you may be inclined to think Wall Street is overreacting to the potential threat posed by Invitae. But you should think twice before overlooking the tiny competitor.

Credit: The Motley Fool

That tiny $240 million