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 24, 2001

Biomet, Inc. made a nice recovery on Thursday. The stock traded to an all-time high of $45.70 after hitting an intra-day low of $42.80 earlier in the day. Unfortunately, we were stopped out at $43 and we are dropping BMET tonight.

Picked on May 3rd @ $42.16
Profit/Loss = +0.84 (+2%) (Stopped out Thursday @ $43.00)
Best Profit = +3.49 (+8%)

May 22, 2001

Biomet, Inc. sold off on Tuesday after hitting an all-time high of $45.64 early in the session. The stock dipped below the 5-dma to an intra-day low of $44.20 on light volume of 979,000 shares. The stock remains in a firm short-term upward trend but the daily volume has been trending lower over the past 3 sessions. BMET may need to consolidate its recent gains before it moves to new highs. For now, support is the 5-dma at $44.60 with additional support at $43.47, Friday’s intra-day low. Resistance has moved up to Tuesday’s intra-day high of $45.64 and then $46. Traders should look for a bounce off of $44.60 or a breakout above $45.64 on midday volume greater then 900,000 shares before opening new positions. We are keeping our stops at $43 to lock in gains.

Picked on May 3rd @ $42.16
Change since picked +2.77
Stop Loss @ $43.00

May 20, 2001

Biomet, Inc. has been trending higher over the past six sessions. On Friday, shares of BMET hit an intra-day low of $43.37 before bouncing back to close at $44.27 on light volume of 1.2 million shares. This left a hammer formation on BMET’s chart, which is generally a bullish sign. BMET is holding its upward trend and daily volume has increased over the last week, so the stock may continue to hit new highs. However, BMET has gained more than 10% in the last six sessions so we may see a round of selling in the near future. In the meantime, support is Thursday’s intra-day low of $43.55 with stronger support at $43.37, the 5-dma. Resistance is currently at Thursday’s intra-day high of $44.72 and then $46. Look for a bounce off of $43.55 or a breakout above $44.72 on midday volume of at least 900,000 shares before starting new plays. We are keeping our stops at $43 to protect gains.

Picked on May 3rd @ $42.16
Change since picked +2.11
Stop Loss @ $43.00