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.
Read more here:
Exact Sciences: Overreaction Achievement Unlocked
