Sell Codexis (CDXS)
Codexis (CDXS) reported earnings yesterday afternoon. While the report wasn’t particularly bad the stock’s action in 2019 (it hit a 52-week high in December and wasn’t able to break higher in February or March), going into earnings (the trend has been mostly down since April, with a flatlining for around six weeks in June and July), and after reporting (shares are down around 10% today) suggests the market isn’t too keen on CDXS.
Revenue ticked down in the quarter, from $13.5 million a year ago to $12.3 million, though product revenue was up 68% to $6.2 million. R&D revenue, which makes up the balance, is typically lumpy so it’s not a huge surprise that there’s a soft spot here. Still, big picture, while there are intriguing aspects to the company, we currently have a full portfolio and it’s time to cull at least one stock that’s out of favor. I’ll keep an eye on Codexis and consider adding back to the portfolio if and when the trend improves. SELL.