Biomet, Inc. designs, manufactures and markets products used primarily by orthopedic medical specialists in both surgical and non-surgical therapy. For the nine months ended 2/28/01, net sales rose 10% to $740M. Net income rose 12% to $138.4M. Revenues reflect continued penetration of the reconstructive device market and higher sales of fixation products. Earnings also reflect increased sales of higher margin products.

May 3, 2001

Biomet provides a wide variety of medical devices such as electrical bone growth stimulators, spinal implants, and bone cements, used primarily by musculoskeletal specialists. Shares of BMET have performed well over the past year. The stock has gained over 97% from is 52-week low of $21.33 on 5/23/00. BMET has been trending higher over the past four weeks, and we believe that the stock could break out to new highs. We are also looking for a split announcement following the June 17th earnings release or its next BoD meeting, expected on June 29th. The company already has enough shares for a split, with 500 million shares authorized and 179 million shares out standing, and the stock is its within historic split range. From a technical standpoint, support is the 10-dma at $41.11 with stronger support at $40.35, the April 27th intra-day low. Resistance is the all-time high of $43.68 and then possibly $44 or $45. Look for entry points on a bounce off of $41.11 or a breakout above $43.68 on volume greater than 900,000 shares by noon. We plan to set stops at $39.50 as downside protection.

Picked on May 3rd @ $42.16
Change since picked +0.00
Stop Loss @ $39.50

May 17, 2001

Biomet, Inc. has posted gains in each of the last five sessions. On Thursday, shares of BMET traded to an all-time high of $44.72 before pulling back to a close of $44.19 on volume of 1.94 million shares. BMET is breaking out after two weeks of consolidation and volume is picking up, so BMET could be ready for a strong rally. From a technical standpoint, support is now at Thursday’s intra-day low of $43.55 with additional support at Tuesday’s intra-day high of $43.30. Resistance has moved up to Thursday’s intra-day high of $44.72 and then $46. Consider starting new plays on a bounce off of $43.55 or a breakout above $44.72 on volume greater than 900,000 shares by noon. We have pushed our stops up to $43 to lock in a gain.

Picked on May 3rd @ $42.16
Change since picked +2.03
Stop Loss @ $43.00

May 15, 2001

Biomet has regained its momentum over the past three sessions. On Tuesday, shares of BMET hit an intra-day high of $43.30 before pulling back to a close of $42.85 on heavy volume of 2.97 million shares. BMET has made three consecutive higher lows after a test of major support at the 50-dma. Volume spiked on Tuesday and the stock was able to close above the 10-dma. The downward trend has been broken and the MACD is turning positive, so BMET could be ready to challenge its all-time high. In the meantime, support has moved up to the May 8th intra-day high of $42.49 with stronger support at the 10-dma $41.50. Resistance is the all-time of $43.68 and then $45. A bounce off of $42.49 or a breakout above $43.68 on midday volume of at least 900,000 shares may be possible entry points. Our stops are holding steady at $39.50.

Picked on May 3rd @ $42.16
Change since picked +0.69
Stop Loss @ $39.50

May 13, 2001

Biomet, Inc. showed some signs of life on Friday following four straight days of losses. Shares of BMET traded to an intra-day high of $41.44 before pulling back to a close of $40.60 on volume of 1.36 million shares. The stock was able to stay above the $40 mark on Friday and it may have found a short-term bottom. Unfortunately, BMET remains in a downward trend so the stock could spend some time in the $40-$42 range before it moves higher. Going forward, support is Friday’s intra-day low of $40 with additional support at $39.74, the 50-dma. Resistance is the 5-dma at $40.89 and then the 10-dma at $41.78. Traders should look for entry points on a bounce off of $40 or a move above $40.89 on volume greater than 900,000 shares by noon. We are keeping our stops at $39.50 as downside protection.

Picked on May 3rd @ $42.16
Change since picked –1.56
Stop Loss @ $39.50