CANSLIM.net Stock Bulletin - Viasys Healthcare Inc (VAS)
Monday, January 30, 2006   CANSLIM.net  

Viasys Healthcare Inc.
Ticker Symbol: VAS (NYSE)	Industry Group: Medical Equipment Wholesale	Shares Outstanding:  31,670,000
Price: $28.75 Jan 27	Day's Volume: 453,100 1/28/2006 Jan 27	Shares in Float:  31,110,000
52 Week High: $29.21 1/28/2006 Jan 27	50-Day Average Volume: 238,800	Up/Down Volume Ratio: 1.2
Pivot Point: $28.89 (12/05/05 high plus $0.10)	Pivot Point +5% = Max Buy Price: $30.33	Web Address: www.viasyshealthcare.com/

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Viasys Healthcare, Inc. (VAS) is a global market leader in health-care technology--a distinction that is built on a solid history of innovation, superior product performance, and a commitment to customer service. VIASYS Healthcare comprises many well-established companies that are each recognized for market leadership. These companies specialize in developing, manufacturing, marketing, and servicing high-technology medical devices that are used in respiratory care, neurology, vascular medicine, critical care, and the medical and surgical product markets. Their products are used to assist physicians in the diagnosis and treatment of cardiopulmonary, digestive, neurological, respiratory, and vascular disorders for neonatal, pediatric, and adult patients. Its customers include hospitals, alternate care sites, clinical laboratories, and private physicians in over 100 countries.  A steady acquisition program (5 during the past year), coupled with strong organic growth, has resulted in an acceleration of earnings and sales growth.  Sales have grown from 7% to 32% to 39% during the past three quarterly reports (Mar, Jun, Sept '05), while earnings per share have risen from 33% to 62% to 186% during the same timeframe versus the year earlier period.  For fiscal year 2005, Wall Street is forecasting earnings per share to jump 63% to $0.96 and another 32% to $1.27 for fiscal year 2006.  VAS is a member of the 15^th ranked Medical-Systems/Equipment sector for relative price performance out of 197 industry groups, and capital has been flowing into the group as its performance has improved from a ranking of 24th three months ago.

What to Look For and What to Look Out For:  A move above the $28.89 mark on at least +50% above average volume would trigger a proper technical buy signal.  Long tails in the candlestick chart suggest that it has encountered ample selling pressure at the $28.79 area in the past.  This evidence of previous resistance, coupled with the stock’s inability to hold above that level during the January 27th session, serve as a reminder that investors should avoid buying in anticipation of the breakout and wait for a legitimate showing of institutional buying demand first.  In addition, while the stock’s Relative Strength rating of 82 meets the minimum requirement, the fact that the RS line has not yet broken out to new highs to confirm the stock's advance raises a cautionary flag.  Also, a more bullish up/down volume ratio of greater than the stock’s present 1.2 would be more comforting as well. Any deterioration under the 50 DMA line would prompt concern, especially if volume were to swell above average.

Technical Analysis:  On November 4th, solid third quarter earnings results and equally bullish guidance served as a catalyst for VAS’ stock to rise above virtually all resistance.  On that day it vaulted +7.7% to $26.70 as volume swelled to 1.4 million shares traded, which was several times its average daily volume.  Subsequently, the stock rallied to the $28.79 level before pulling back in early January to successfully test support near the November 1st gap up.  The uptrend has since resumed, with the stock currently poised near all-time highs.