OVERVIEW
NVTA is up ~40% as of writing this note, following this morning's announcement of a deal to acquire ArcherDX for $1.4B assuming all earn outs are hit. We are moving NVTA to the short bias list.
We stayed past the point of victory in a short thesis emphasizing a reduction in available funding as a result of COVID-19. That significant aspect of the thesis has deteriorated as access to capital has not been a significant problem. Regardless of the availability of detailed disclosures of organic and acquired growth, revenue is accelerating with the acquisition of ArcherDX. Against the back drop of short interest in the high teens, we have decided to alter our position.
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