Exact Sciences: Overreaction Achievement Unlocked

When I last wrote about ever-controversial Exact Sciences (EXAS), I said that I preferred to wait for another inevitable overreaction to news. The shares are pretty much the same price now as they were then, and there’s the advantage of getting another two quarters of financial data in hand, not to mention some encouraging clinical data on new biopsy tests under development.

Although there’s more volatility here than I normally like, and management’s execution hasn’t been flawless, the long-term opportunity is pretty interesting. I’m still a little concerned about the med-tech sector re-rating down off of historically high levels, but that’s a “you pays your money, you takes your chances” sort of boilerplate risk. Given that I see upside into the $50’s, I’d say this is a name to consider, but do bear mind that this stock is quite a bit more volatile and controversial than you might otherwise think based upon the product, market, and financials to date.

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Exact Sciences: Overreaction Achievement Unlocked