Upgrade your membership to see all of the expert analysis we have published on SIRO now!

Sirona Dental Systems (SIRO -$0.83 or -2.15% to $37.48) is continuing to sputter below its 50-day moving average (DMA) line which is acting as resistance. On 5/05/10 it endured heavy distributional pressure after reporting +231% earnings on +15% sales revenues for the quarter ended March 31, 2010 versus the year ago period. Since its last appearance in this FSU section on 4/22/10 under the headline "Wedging Up For Another New High Close" a gap up on 4/23/10 and then a subsequent gap down on 5/05/10 formed a worrisome "island reversal" pattern. Prior chart highs in the $36 area define important support to watch, while the outlook becomes more questionable the longer it lingers below its 50 DMA line.

SIRO was featured in yellow in the 2/16/10 mid-day report (read here) as it broke out from a 10-week flat base. Fundamentally, following 3 negative comparisons, its sales revenues and earnings increases in the Sep, Dec '09 and Mar '10 quarterly comparisons 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). While rallying from January 2009 lows near $10 underwriters helped this high-ranked Medical - Systems/Equipment firm complete Secondary Offerings on 8/06/09 and 12/11/09, and yet another Public Offering on 2/17/10. The number of top-rated funds owning its shares rose from 55 in Mar '09 to 99 in Mar '10, which is nice reassurance with respect to the I criteria of the investment system.  Companies often attract new institutional investors with the help of underwriters, but offerings often have the near-term effect of hindering upward price progress. Company management reportedly still owns a 70% interest in the company's shares even after those offerings, keeping them very motivated to maintain and build shareholder value.

Sirona Dental Systems (SIRO +$0.20 or +0.50% to $40.42) has been wedging continually higher in recent weeks, and today it inched up for yet another new high close.  It is not near a sound base now, and the company is scheduled to report results for the latests quarter before the market opens on May 5th.  Prior chart highs and its 50-day moving average (DMA) line in the $36 area define important support to watch. It was featured in yellow in the 2/16/10 mid-day report (read here) as it broke out from a 10-week flat base. 

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). As it has rallied from January 2009 lows near $10, clearly it has been able to get help from underwriters as this high-ranked Medical - Systems/Equipment firm completed Secondary Offerings on 8/06/09 and 12/11/09, and yet another Public Offering on 2/17/10. The number of top-rated funds owning its shares rose from 55 in Mar '09 to 94 in Mar '10, which is nice reassurance with respect to the I criteria of the investment system.  Companies often attract new institutional investors with the help of underwriters, but offerings often have the near-term effect of hindering upward price progress. Company management reportedly still owns a 70% interest in the company's shares even after those offerings, keeping them very motivated to maintain and build shareholder value.

Sirona Dental Systems (SIRO -$0.22 or -0.59% to $36.99) held its ground today following a negative reversal on 3/25/10 for a small loss after early gains helped it briefly hit a new 52-week high above its "max buy" level. Prior chart highs and its 50-day moving average (DMA) line in the $35-36 area define important support to watch. Any subsequent weakness below its pivot point or its 50-day moving average (DMA) line would raise concerns. It has not made much progress since it was featured in yellow in the 2/16/10 mid-day report (read here) as it broke out from a 10-week flat base. The considerable 2/16/10 gain triggered a technical buy signal and an annotated graph was included under the headline "Medical - Systems/Equipment Firm Identified While Breaking Out."

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). As it has rallied from January 2009 lows near $10, clearly it has been able to get help from underwriters as this high-ranked Medical - Systems/Equipment firm completed Secondary Offerings on 8/06/09 and 12/11/09, and yet another Public Offering on 2/17/10. The number of top-rated funds owning its shares rose from 55 in Mar '09 to 86 in Dec '09, which is nice reassurance with respect to the I criteria of the investment system.  Companies often attract new institutional investors with the help of underwriters, but offerings often have the near-term effect of hindering upward price progress. Company management reportedly still owns a 70% interest in the company's shares even after those offerings, keeping them still very motivated to maintain and build shareholder value.

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). As it has rallied from January 2009 lows near $10, clearly it has been able to get help from underwriters as this high-ranked Medical - Systems/Equipment firm completed Secondary Offerings on 8/06/09 and 12/11/09, and yet another Public Offering on 2/17/10.  The number of top-rated funds owning its shares rose from 55 in Mar '09 to 79 in Dec '09, which is nice reassurance with respect to the I criteria of the investment system.  Often companies attract new institutional investors with the help of underwriters. Any weakness below its pivot point or its 50-day moving average (DMA) line would raise concerns.