The analysts who oversaw this portfolio before me found a lot of great stocks and big winners. Cerus (CERS) is not going to turn into one of those.

The share price tumbled 18% yesterday and is down a further 7% today after the developer of blood purification kits said recent prospects for new contracts in France and South Africa fell through.

Though the company lowered its annual revenue projection only modestly, annual sales of around $45 million are simply not sufficient to deliver the scale profit opportunities we’re looking for. Furthermore, they demonstrate that the company’s offerings face plenty of competition and imply its technology is not unique.

Sell CERS.