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Strategies & Market Trends : CYTC - How High Can It Go!

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To: Tony J Brice who wrote ()2/20/2000 8:33:00 PM
From: Jack Hartmann  Read Replies (1) of 185
 
Barron's Excerpt on CYTC
An Interview With Richard Driehaus interactive.wsj.com
Last year, $1.8 billion Driehaus MidCap rose an astounding 222.4%, and $1.1 billion Driehaus Small Cap climbed 196.6%.

Q: What else do you like these days?
A: Another one is Cytyc, which makes a medical diagnostic product called ThinPrep to better preserve and test cell samples. Its fastest-growing field is its test for cervical cancer. ThinPrep technology has superior accuracy to conventional Pap Smear tests and is now being accepted by a lot of health-care providers and insurers. Though its recently reported earnings were only in line with expectations, the company has explosive growth potential over the next few years of 40%-50%, based just on the increasing acceptance of its product. Cytyc's market share jumped from 13% to 19% in just the second half of last year.

Q: Trading around 35, this stock isn't exactly cheap, either.
A: No, but it's relatively attractive to us because we're expecting much-higher-than-consensus earnings for both this calendar year and next. We are looking for about $1 for 2000 and maybe around $1.40 for 2001. So, at around 35 times this year's earnings, the stock isn't that high.

Comment: This man's fund return numbers for 1999 are monsters and when he says CYTC isn't that high, people will buy on Tuesday.
Jack
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