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Byline: KEN HOOVER
Health care, biotech and tech stocks led the charge when a new market rally began in March 2003. Hi-Tech Pharmacal was one of the first stocks out of the block, scoring a significant gain.
Hi-Tech operates in a corner of the generic drug business, dealing in liquid and semisolid drugs. That way, it avoided competition from the giant drug companies.
The strategy worked, and Hi-Tech showed terrific earnings growth at a time when generic drug companies were leading the market, buoyed by hopes the federal government would make generics easier to buy.
Earnings for the four quarters before the breakout rose 30%, 7%, 86% and 75%. Sales were up 6%, 21%, 53% and 39%.
The Earnings Per Share Rating was 99. The Relative Strength Rating was 98. The Accumulation/Distribution Rating was B.
Hi-Tech was one of the fastest growing companies in the country. But there was a risk that should have given an investor pause. No Wall Street analysts covered the company.