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Biosite Inc. - BSTE - close: 63.39 chg: +2.38 stop: 59.99

Company Description:
Biosite Incorporated is a leading bio-medical company commercializing proteomics discoveries for the advancement of medical diagnosis. The Company's products contribute to improvements in medical care by aiding physicians in the diagnosis of critical diseases and health conditions. Biosite's Triage rapid diagnostics are used in approximately 50 percent of U.S. hospitals and in more than 50 international markets. (source: company press release or website)

Why We Like It:
We are going to hedge our bets a little bit and add BSTE to the list as a bullish candidate. The company isn't quite a pure biotech play but the stock seemed to rally strongly with the BTK index. We also like how BSTE has been very resistance to the market's weakness over the past two weeks. While the rest of the market was falling shares of BSTE were consolidating sideways above the $60.00 level. Today's rebound from the $60.00 mark pushed through short-term resistance at the $62 level on volume about twice its daily average, which should suggest more strength ahead. We have two targets. Our first target is the $67.50 mark, where BSTE failed back in May. Our second target is the $69.50-70.00 range. The Point & Figure chart currently points to a bullish $87 target. The biggest risk here is the time frame. We want to exit ahead of the October 25th earnings report. Thus if we do not see some significant follow through on today's breakout over the next couple of sessions we're going to exit early!

Suggested Options:
We are suggesting the November calls.

BUY CALL NOV 60.00 BQS-KL OI= 63 current ask $5.40
BUY CALL NOV 65.00 BQS-KM OI=176 current ask $2.45

Picked on October 13 at $ 63.39
Change since picked: + 0.00
Earnings Date 10/25/05 (unconfirmed)
Average Daily Volume = 261 thousand
 

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