Sell 10X Genomics (TXG)
Today we’re stepping away from our remaining three-quarter position in long-term holding 10X Genomics (TXG), which we added in December 2019. The stock has been moving sideways since January, and this week management spoke at conferences and suggested it is seeing lower-than-expected lab activity during what’s already a seasonally slow period. It appears rising COVID-19 Delta cases had an impact in August. While the trends improved in September Delta is likely to remain a headwind for at least a few quarters. Also, we’ve seen some multiple compression across the life sciences and diagnostics space. The combination of these factors may easily mean shares of TXG don’t trade meaningfully higher for some time. We have a gain of over 140% on our remaining stake. Let’s lock it in and move TXG back to the watch list in hopes of adding back at a time when the near-term upside potential looks more favorable. SELL