BMET - Biomet Inc. $42.55 (+0.86)

Sunday's Comment:

Biomet, Inc opened in negative territory on Friday, thanks to a weak employment report. However, the stock moved quickly off its lows along with the AMEX Biotech Index (BTK.X). Shares of BMET ended the session at $42.55 on volume of 1.93 million shares. The stock is giving a mixed signal, with three consecutive lower lows within a long-term upward trend. Therefore, BMET may spend some time consolidating in the $41-$44 range. The company is expected to announce earnings on June 17th and we are looking for a split announcement with the release or with the next BoD meeting, expected on June 29th. BMET has enough shares for a split, with 500 million shares authorized and 179 million shares out standing, and the stock is within historic split range. The Board set a 3:2 split last June when the stock was trading in the $30- $40 range. For now, support is the 10-dma at $41.42 with additional support at $40.35, the April 27th intra-day low. Resistance has fallen to Friday's intra-day high of $43 and then the all-time high of $43.68. Traders may consider starting new plays on a bounce off of $41.42 or a move above $43 on volume greater than 900,000 shares by noon. Our stops remain at $39.50.

Picked on May 3rd @ $42.16 Change since picked +0.39 Stop Loss @ $39.50

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