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Released: Mon, Jan 12th, 2004 | 8:10 PM

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Profile: Invitrogen Corporation is a leading supplier of molecular biology reagents and kits, and cell culture products for life science research and biopharmaceutical production. They offer over 10,000 products that help life scientists isolate and analyze genes and proteins in order to understand the molecular basis of disease. The company's products and services support academic and government research institutions, and pharmaceutical and biotech companies worldwide in their efforts to improve the human condition. Essentially, the company develops research tools for biotechs and drug makers by providing essential life science technologies for disease research, drug discovery, and commercial bio-production. Invitrogen's own research and development efforts are focused on breakthrough innovation in all major areas of biological discovery including functional genomics, proteomics, bio-informatics and cell biology -- placing Invitrogen's products in nearly every major laboratory in the world. Today, Invitrogen's products are used globally in life science applications such as:

• Study of the cellular and genetic bases of diseases including cancer, diabetes, AIDS, cystic fibrosis, and Down's syndrome

• Development of cell and gene therapies used in bone marrow transplants, wound healing, and burn treatment

• Large-scale manufacture of genetically engineered health care products, including human and animal vaccines, and therapeutic drugs 
  

Additionally, the company actively acquires health-related businesses that complement its own skill base, acquiring four in the past 16 months. It conducts business in more than 70 countries around the world, and globally it employs approximately 3,000 scientists and other professionals.

Technical Chart Analysis: 
The above daily chart and linked weekly chart show that IVGN spent 2003 on a strong bullish run - forming the right side of a multi-year cup.  After gapping above both its 50- and 200-day moving averages on April 25, 2003, it closed above the 50 DMA the rest of the year.  Further, it pulled back to the support of its 50-day moving average five times during that period (four of which are shown above):  the last three were used to draw a supporting trend line (green).  Also, in the five-month period depicted above, 25 days produced an increased price on volume exceeding its moving average (black bars above moving average line), whereas only 10 days produced a lower price on such a volume increase (red volume bars above the moving average line).  Clearly, this suggests that its shares have been under accumulation.  The on balance volume trend bears that out.

The ideal buy point for IVGN shares has been tough to find, as it has not spent much time basing.   It is more fair to say it has been building an ascending base.   One could, however, use a pivot point 10 cents above its recent high of $70.94 (December 29, 2003), or $71.04, and look to enter a new position as high as 5% higher (making the limit to buy at $74.51).

What to look for?
Price is likely to climb quickly if the stock manages to rise beyond its pivot point with a meaningful trading volume increase.  It may well encounter resistance at its 2000 peaks ($87.44 in November 2000 and $99.50 in March 2000). Disciplined investors may wish to buy IVGN upon clearing its pivot point, as well as accumulate on any ordinary dips, so long as there is not a technical breakdown.  Any heavy selling resulting in a close below its trend line on very heavy volume would be considered a sell signal.  A break below its 50-day moving average line (currently near its trend line) would add even greater concern.  We always recommend limiting losses at 7-8% and suggest exiting any position that closes below its 50-day moving average and/or violates areas of prior support with any technical significance. 

Annual Earnings - - When applying CANSLIM there should be meaningful annual earnings growth over the last three to five years. The average annual compounded growth rate of earnings in the superior firms should be from 15% to 50% per year or more.  Despite a steady decline between 1999 and 2002 in earnings growth, a review of the table below shows Invitrogn Corp.’s annual earnings growth comparisons averaging better than the minimum guideline (except for 2002).  According to Daily Graphs (a product of William O'Neil + Co. not affiliated with CANSLIM.net) the Growth Rate is listed at 59%, based on the company's 3-5 year earnings history.

IVGN broke out to a new 52-week high today on greater than average volume. Closing in the top 20 percent of its daily range was another bullish development as was the price confirmation of the On-Balance-Volume's new high. Two pieces of data support further price growth from here: (1) 10.8 percent of the shares in its float had been sold short as of 12/8/03 (covering these short positions will add to the buying pressure); and (2) next year's PEG ratio [todays price/'04 earnings estimate/('03 to '04 earnings growth)] is 0.90, reflective of the value remaining in these shares (PEG values less than 1.0 support price growth, especially for fundamentally strong companies. One caveat though, IVGN has been on a bullish tare since last April, running up from $28, and several times during that run, it has pulled back to the vicinity of its 50-day moving average. The market is overbought here and beginning to run into major overhead resistance. If the market pulls back, so will IVGN. Look to add to your positions as long as IVGN's closing price remains above its 50-day average.

01/15/04:

IVGN continued its bullish move today, making a new 52-week high ($74.40) before closing at $73.75.  It also broke through the high established during October of '01($73.79), then retraced to close near it. Tomorrow, it could continue up (using the prior high as support) or pullback (using the prior high as resistance).

Please let us know if you have any questions about this stock, as we would be glad to assist you.

The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. Our firm, employees, and customers may effect transactions, including transactions contrary to any recommendation herein, or have positions in the securities mentioned herein or options with respect thereto. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities. This is an unsolicited opinion, and WWW.CANSLIM.NET. has not been compensated in any way by the company(s) mentioned in this report.

Comments contained in the body of this report are technical opinions only and are not necessarily those of WWW.CANSLIM.NET  The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. Our firm, employees, and customers may effect transactions, including transactions contrary to any recommendation herein, or have positions in the securities mentioned herein or options with respect thereto.  Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities.  This is an unsolicited opinion, and WWW.CANSLIM.NET has not been compensated in any way by the company(s) mentioned in this report.

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