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

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To: Philip Hager who wrote (28)6/22/1997 11:20:00 AM
From: Ted Downs   of 185
 
The thin prep pap test is much more accurate than the conventional pap smear. The fact that Mead Johnson is selling the test through their sales force and Jun 19th Quest Diagostics Inc. announced their labs have a longterm agreement to use the test means that Cytyc has finally taken off IMHO. The only fly in the ointment seems to be whether the insurance community will resist the additional cost. That could slow the acceptance somewhat but the trend in the health coverage field is preventive care so I think the difference in costs of tests will be outweighed by the accuracy and overall be cheaper in the longrun for the HMO's etc.
The stock appears to want to back off some with a short term sell by the stochastics reading, but the charts still look like their solid for a move into new high ground. Friday saw some resistance and it's due to about a 12 point move recently.

Good Luck,

Ted
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