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Syneron Medical - ELOS - close: 31.96 chg: +2.00 stop: 29.49

Company Description:
Syneron Medical Ltd. manufactures and distributes medical aesthetic devices that are powered by the proprietary, patented ELOS(TM) combined-energy technology of Bi-Polar Radio Frequency and Light. The Company's innovative ELOS(TM) technology provides the foundation for highly effective, safe and cost-effective systems that enable physicians to provide advanced solutions for a broad range of medical-aesthetic applications including hair removal, wrinkle reduction, rejuvenating the skin's appearance through the treatment of superficial benign vascular and pigmented lesions, and the treatment of acne, leg veins and the appearance of cellulite. Founded in 2000, the corporate, R&D, and manufacturing headquarters for Syneron Medical Ltd. is located in Israel. (source: company press release)

Why We Like It:
ELOS is surging higher on rising volume and the stock looks ready to break through resistance near $32.50 at the top of its consolidation over the past 3 1/2 months. Volume on Friday's rally was about four times the average, which is very bullish. If you look at the P&F chart you (see below) you can see that ELOS has already broken through resistance and produced a very bullish quadruple top breakout buy signal with a $41 target. We want to see more confirmation. Here's why... ELOS only has about 22 million shares outstanding. The company recently produced a secondary offering of 7 million shares that sold near $28 a share. Normally something like this would produce a huge down draft on the stock price. Shareholders hate to have their investment diluted by a big second offering of stock. Yet surprisingly ELOS is showing strength. We will use a TRIGGER above 32.50. Our entry point will be $32.55. If we're triggered we'll target a move into the 37.00-38.00 range.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/09/05 (unconfirmed)
Average Daily Volume: 329 thousand

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