CEFT - Concord EFS $41.31 +1.31 (+3.13)

Concord EFS, Inc. is a leading provider of electronic transaction authorization and funds transfer services for credit and debit card transactions. CEFT is a contra-tech stock. The NASDAQ hit an all-time high on March 9, while shares of CEFT traded down to a 52-week low. Since then, the NASDAQ has been in a long-term downtrend, while CEFT trades to new highs. On Friday morning, the Company released in-line earnings results for the quarter. Revenues grew 38% to $318 million and net income grew by 17% to $44 million. The stock sold off following the news but made a strong recovery at the end of the day. CEFT continued to move higher on Monday, hitting an all-time high of $40.38 on strong volume. The rally extended into Tuesday's session, as CEFT traded to another all-time high of $43.19 on four times average daily volume. We feel that CEFT could move even higher as the NASDAQ attempts to put in a bottom. We may also get a split announcement in the near future. The company has enough shares for a split with 500 million shares authorized and 213 million shares outstanding. Furthermore, the share price is currently above historic split range. Going forward, support is Tuesday's intra-day low of $40 with stronger support at the 5-dma of $39. Resistance is the all-time high of $43.19 and then $45. We are looking for entry points on a bounce off of $40 or a breakout above $43.19 on volume greater than 800,000 shares by midday. We plan to set stops at $37 for protection.

Picked on October 31st @ $41.31 Change since picked +0.00

BMET - Biomet $36.19 +1.13 (+1.38)

Biomet makes an array of orthopedic medical products, which is a fast-growing market thanks to our aging population. BMET's next earnings release is not until December 13th. The Company is expected to report solid profits of $0.29 a share, which would be four pennies above what the Company reported in the same quarter a year ago. At first glance, you would think that the share price is too "cheap" for management to consider a split announcement, but the Company's split history indicates that this is not the case. BMET paid out a 3:2 split back in August. At the time the split was announced, the stock was trading at $38.00. There are plenty of authorized shares to pay another split. BMET made a new closing high today. If the NASDAQ remains strong this week, it is perfectly reasonable to expect BMET to make yet another new high. The RSI tells us that there is still some upside potential. We are setting our initial stop at $33.00, which is just below the support offered by the 50-DMA. If we are not stopped out, we will exit this position prior to the earnings release, or right after a split is announced.

Picked on October 31st @ $36.19 Change since picked +0.00