BRLI- Fresh Breakout
Friday, December 15, 2006 - CANSLIM.net

Bio Reference Labs Inc.

 

Ticker Symbol: BRLI (NASDAQ)

Industry Group: Medical/Dental-services

Shares Outstanding:  13,100,000

Price: $25.40 1:08PM ET

Day's Volume: 93,000 12/15/2006 1:08PM ET

Shares in Float:  10,700,000

52 Week High: $25.78 12/15/2006 1:08PM ET

50-Day Average Volume: 94,900

Up/Down Volume Ratio: 1.6

Pivot Point: $25.10

Pivot Point +5% = Max Buy Price: $26.35

Web Address: http://www.bio-referencelabs.com

 

Company Description:
Bio-Reference Laboratories, Inc. provides clinical laboratory testing services primarily in the greater New York metropolitan area. It laboratory testing services are utilized by healthcare providers for the detection, diagnosis, evaluation, monitoring, and treatment of diseases. The company offers a range of chemical diagnostic tests, including blood and urine analysis, blood chemistry, hematology services, serology, radioimmuno analysis, toxicology pap smears, tissue pathology, and other tissue analysis. It offers its services directly to physicians, hospitals, clinics, correctional, and other health facilities. BRLI has increased its earnings versus theyear earlier by an impressive +29%+82%, and+42% in thethree most recent comparisonsfor the quarters ended in Jan, April, and July '06. Return on Equity of 17% matching the +17% guideline.The company's management owns a 18% stake inits shares, keeping the directors keenly focused on building shareholdervalue.The company hails from the Medical-dental-servicesgroup which is presently ranked 121 on the 197 Industry Groups list, which does not place it in the top quartile of industry groups. The number of top-rated funds with an ownership interest has increased from 22 funds in December '05, up to 39 funds as of September '06, a compelling sign of increasing institutional interest (the "I" criteria).The company also operates a clinical knowledge management service, which uses customer data from laboratory results, pharmaceutical data, claims data, and other data sources to provide administrative and clinical decision support systems. In addition, it operates a Web-based connectivity portal solution for laboratories and physicians. Bio-Reference Laboratories was founded in 1981. The company is based in Elmwood Park, New Jersey.

What to Look For and What to Look Out For: Watch for this stock to continue pulling back on lighter volume as it tests its pivot point. If the bulls manage to overpower the bulls then this stock will find support and continue marching higher. However, if this stock fails to follow through to the upside and closes below its pivot point then the recent breakout will be negated. As always, stop losses should be placed 7-8% below your entry point to preserve capital.

Technical Analysis: BRLI blasted out of a flat three month base on Thursday. It was encouraging to see volume swell as this stock blasted to new highs. Bio Reference Labs has currently cleared all overhead resistance and the path of least resistance is now higher. However, it is important to note that approximately +40% of stocks pullback and test their pivot points before taking off.


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