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Subject:Andrew - Fagan Report / Trade Alert #15 / Speculative Buy /
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Date:Thu, 31 May 2001 11:00:47 -0700 (PDT)

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Andrew,
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THE FAGAN REPORT / http://www.faganreport.com
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TRADE ALERT #13
CEPHEID / (Nasdaq - CPHD)
May 31, 2001
09:45AMET - emailed to TFR Trade Alert Subscribers

NOTE - DELAYED DELIVERY: This information was previously distributed
to Fagan Report Trade Alert Subscribers at the above noted time and
date. Due to ever-changing market considerations - it may or may not
be applicable at this time.

TRADE ALERT #13 - Speculative Buy / Cepheid / (Nasdaq - CPHD),
currently trading at $3.50 with a target above $6.00 and a stop-loss
at $2.89.

Cepheid (CPHD), based in Sunnyvale, CA, is developing and
commercializing versatile, miniaturized instruments that perform all
the steps required to rapidly analyze genetic material found in
complex biological samples -- sample preparation, amplification, and
detection. Integrating proprietary microfluidic and microelectronic
technologies. It is commercializing products initially for DNA and
RNA analysis in clinical diagnostics, life-science research,
agriculture, industrial testing, and pharmacogenetics.

Not many stock speculators can decipher the above paragraph, but if
you go to www.cepheid.com it all begins to make sense. Cepheid is
making it possible to do complicated, critical compound analysis on
site in vastly reduced time frames. The range of applications is
almost unlimited. It can help detect the spread of cancerous cells
during a surgical procedure. In agriculture, it is being tested to
identify the spread of Pierce Disease in the California grapevine
industry. I looked up Pierce Disease and found the following:

Pierce's disease infects grapevines, effectively choking the tissues
that deliver water and nutrients throughout the plant. Infected ines
usually die within a few years. The disease has been present in
California at relatively low levels for decades, but is cause for
heightened concern because the glassy-winged sharpshooter (insect),
newly arrived from the southeastern U.S. and northern Mexico, can
spread it much more rapidly than native insects. - SACRAMENTO,
Calif., May 16, 2001 /PRNewswire via COMTEX/ -- Cepheid (Nasdaq:
CPHD) today announced that its Smart Cycler(R) TD System is being
exhibited for early detection of Pierce's disease in grape vines at
today's 13th annual California Association of Professional Scientists
(CAPS) State Scientists Day held at the Capitol. Using the portable,
real-time gene-detection system, for the first time scientists can
detect the lethal disease before symptoms appear, allowing vintners
to remove infected vines earlier in the growing season before the
disease is spread by insect carriers.

Situations like this have the potential to catch the imagination of
the market.

CPHD went public in June 2000 through an IPO (led by VSB Warburg) of
five million shares at $6.00. A further 20.5 million pre-IPO issued
shares became free trading in December 2000. Presently, there are
25.5 million shares issued. As of March 31, 2001, cash on hand stood
at $37 million - current liabilities $5 million. Based on published
information, I estimate FY01 revenue of between $15 and $20 million,
with a net cash burn of $12-$18 million. FY02 is where sales and
profits should start to improve. CPHD's 52-week high/low stock price
is $27.50 / $2.97. What I like about CPHD is its cutting-edge
technology in what is likely to be an in-vogue market sector.

NOTE / DISCLAIMER All information published by The Fagan Report is
for informational purposes only. As Editor, I, Brian Fagan, tell you
what I am or would be doing if I had sufficient capital to do so. You
read and/or subscribe to receive this information for whatever
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securities. Please see our complete disclaimer statement at:
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COPYRIGHT: Fagan Report Trade Alerts are copyright material. It is
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Wishing you all the best,
The Fagan Report,
Brian Fagan
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May 31, 2001

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