Harvard Bioscience, Inc (HBIO $9.95) is a global developer, manufacturer and marketer of a range of specialized products, primarily scientific instruments, used to accelerate drug discovery research at pharmaceutical and biotechnology companies, universities and government laboratories worldwide. The Company's product range is generally targeted towards four major application areas: ADMET (absorption, distribution, metabolism, elimination and toxicology) screening; molecular biology; high-throughput/high-content screening for model organisms, and genomics, proteomics and high-throughput screening of potential drugs.  The Company's largest customers in the United States include Yale University, Aventis, Glaxo SmithKline, Pfizer, Merck & Co. and Roche Bioscience.

CANSLIM related high points for this leading company of IBD's highly ranked Medical/Dental-Service group include:

• Decent Current quarterly earnings comparisons (see numbers below)

• Nice Annual earning history with steady EPS increases year to year since it began trading publicly on December of 2000, along with estimated increases in coming years.

• New acquisition of BioRobotics Ltd.  as well as growth in existing sponsors during the past quarter. All time New price highs.

• Small supply of Shares outstanding (30.1 mil) means stock can more easily move. (up or down)

• A Leading company in the Medical-Products group, a group which is listed in the top 20% or top 1/5 of  IBD's list of 197 Industry Groups.

• With Institutions owning 29% it is clear that mutual fund managers are aware of HBIO and the Up/Down volume ratio of 1.2 hints at buying demand and the institutional accumulation of shares.

Last Friday's gains on above average volume were seemingly an important technical bounce occurring right at the upward trend line.  Technically the stock's price spiked up on above average volume after testing support near the upward trend line (noted in green) on the above chart.  This makes for a very interesting study example, and a very important point to watch is its prior high close of $9.97 as it broke out on December 29th, 2003 from a saucer shaped pattern.  It has since been forming a new flat base on top of the prior base.  It appears set up to potentially strike a new high close with very little resistance in standing in the way of higher prices.   However, historic highs in the $13-14 range hit in 2000-2001 may be expected to create at least some logical resistance for the stock before any more meaningful increase can occur.   

The stock was added to the Nasdaq Biotechnology Index (BTK) effective with the market open on Monday, November 24, 2003. 

Clearing the pivot point identified on heavy volume would trigger a technical buy signal, and the patient investor should wait to see this as a confirmation signal before buying.

A key concern is that Harvard Bioscience only trades an average of around 90,400 shares on a typical trading day. This may make it difficult for institutional investors to avoid disrupting the share price when making any meaningful accumulation or distribution of ownership interest.  Company management, it is worth noting, owns a 35% interest, which certainly keeps them motivated to maintain and maximize shareholder value.  Overall market and medical group action will surely have a great influence on the outcome.  Due to liquidity concerns and the fact that this is a low priced stock, investors are advised to proceed very carefully with any purchases.  Also study its weekly chart, which shows that the stock has already enjoyed a substantial run.  Thus, the proper sell discipline is advised as always, which means always limiting losses at 7-8%. 

More Info: 5-year Chart from BigCharts.com

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