http://factbasedinvesting.com - Medical - Systems/Equipment Firm Identified While Breaking Out

Sirona Dental Systems (SIRO +$2.26 or +6.49% to $37.09) gapped up today and hit a new 52-week high with a considerable gain, triggering a technical buy signal. It was featured in yellow today the mid-day report (read here) while rallying from a 10-week flat base. It has rallied from January 2009 lows near $10. Fundamentally, following 3 negative comparisons, its sales revenues in the Sep and Dec '09 quarters showed a return to growth. Quarterly earnings increases have been very strong along with great annual earnings growth in recent years (good C and A criteria).

This high-ranked Medical - Systems/Equipment firm completed Secondary Offerings on 8/06/09 and 12/11/09. The number of top-rated funds owning its shares rose from 55 in Mar '09 to 75 in Dec '09, which is nice reassurance with respect to the I criteria of the investment system. Gaps up into new high territory are also signs of heavy accumulation. The bigger concern right now remains the M criteria, as 3 out of 4 stocks follow the general market direction. Until a solid follow-through-day occurs, new buying efforts are discouraged under the strict rules of the investment system. In a healthy market environment, there is usually no shortage of ideal buy candidates that come along. The current dearth of leadership remains a concern.