This company is nearing break-even operating results, yet remains saddled with an anemic stock market valuation. With a $47M market cap, $17M in cash and no long-term debt, the net cost of an acquisition would be $30M (plus whatever premium to the market price were necessary to win shareholder approval).

Why wouldn't a Lab Corp (LH) or Quest Diagnostics (DGX) be looking to pull the trigger on that deal?

Either of these companies could pick up Orchid's approximate $60M in annual service revenue, acquire a high-end, respected brand name in Cellmark and generate results which are quickly accretive to earnings by reducing overhead (folding these operations into their existing infrastructure).

I've owned this stock for a long time, dollar cost averaging my way down over the years, but have still lost 50% of my investment. I retain faith in identity genomics as a growth industry (not that we've seen any revenue growth for years, mind you, but I continue to believe this industry will grow). But I am wondering how long profitability will elude this company. I worry that available market prices for these services won't support an independent, publicly traded company of this size.

Interested in anyone's thoughts on this question.

Relative stats:
Lab Corp Price / Sales ratio = 1.60,
Quest Diagnostics Price / Sales ratio = 1.41
Orchid Price / Sales ratio = 0.87

Lab Corp market cap $7.5 Billion
Quest Diagnostics market cap $10.5 Billion
Orchid market cap $47 Million