Hologic, Inc. (HOLX)

AnomaLee (99.54) Submitted: 5/09/08 6:12 AM : Start Price: $22.52 HOLX Score: 0.84

I'm mostly just charting here close to its 52-wk low. Reading the risks from their 10-Q form was like reading the health risks associated with the latest blood pressure pills, and health care stocks are not for those with faint hearts. Management noted very well that there has been extreme difficulty with their merger with Cytyc. These shares are also bound for some serious dilution, but Goldman Sachs was involved with the financing so I somewhat look at that as a positive. Well, Goldman Sachs is due to profit even if these shares do not.

The most important thing here is 100% revenue growth. Over 60% of that was due to an increase in breast health and diagnostics. These are trends that will continue to grow as women's health needs are continued to be addressed. Despite whatever political/social risks there may be these guys will be getting paid regardless of where the checks come from or standard practices enacted. I think the shares will eventually follow for investors...

The cost of sales are probably as bad as they're going to be. Fundamentally things could not be worse, yet our trustworthy analysts have still awarded this stock with a Forward P/E of 15... I'm not convinced enough to buy. I think this stock could be very volatile moving forward and could break either way, but I believe breasts and good health are great things. Green thumb for CAPs

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