High-Ranked Medical Firm Basing Above 50-Day Average Line
Friday, February 12, 2010 CANSLIM.net
Bio-Reference Laboratories, Inc. (BRLI +$0.01 or +0.03% to $39.43) is perched less than -4% from its 52-week high, consolidating for at least 5-weeks above support at its 50-day moving average (DMA) line. It was featured in yellow in today's mid-day report (read here). Very little resistance remains due to overhead supply. Earnings growth and sales revenues growth has accelerated, with increases better than the +25% minimum guideline in recent quarters. Fundamentals are favorable with respect to the C and A criteria. The high-ranked Medical/Dental Services firm has only 13.9 million shares outstanding (S criteria) and has average daily volume under 100,000 shares, which could contribute to greater price volatility in the event of more decisive institutional buying or selling. The number of top-rated funds owning its shares rose from 77 in Mar '09 to 87 in Dec '09 which is somewhat reassuring in regard to the I criteria of the investment system. Gains above its pivot point with at least +50% above average volume could trigger a technical buy signal, however, the M criteria is an overriding concern until a follow-through-day occurs.