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Biomet - BMET - close: 38.55 chg: -0.14 stop: 39.51

Company Description:
Biomet, Inc. and its subsidiaries design, manufacture and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy. The Company's product portfolio encompasses reconstructive products, including orthopedic joint replacement devices, bone cements and accessories, and dental reconstructive implants; fixation products, including electrical bone growth stimulators, internal and external orthopedic fixation devices, craniomaxillofacial implants and bone substitute materials; spinal products, including spinal stimulation devices, spinal hardware and orthobiologics; and other products, such as arthroscopy products and softgoods and bracing products. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in more than 100 countries. (source: company press release)

Why We Like It:
We suspect that the market is currently in an oversold bounce and will soon meet and fail at resistance before turning lower again. That's why we like BMET. Shares of BMET have been trading lower in a wide descending channel for months. The stock has already bounced back from the lower band to the upper (resistance) band of its channel and the momentum is beginning to fade. This is a classic short at resistance with the stock in a downtrend. The MACD indicator is nearing a new sell signal and BMET's P&F chart is in a sell signal that points to a $32 target. In spite of all the negativity we want to play it somewhat safe. The FOMC meeting is tomorrow and market direction could be very volatile. That's why we want to use a TRIGGER to catch the next leg lower in BMET. Our suggested entry point is $37.45. More aggressive traders might want to consider shorts under $38.00. More conservative types can wait for a decline under $37.00. Our target is the $33.00-32.00 range. Our time frame is six-to-eight weeks.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 03/22/05 (confirmed)
Average Daily Volume: 2.4 million
 

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