Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Wednesday, January 19, 2005

Syneron Medical Ltd (ELOS)

…It closed today at $29.77, down $1.05 on volume lower than the 50-day average. This would be considered a positive pullback on low volume.

ELOS was a strong stock for MSW in 2004:
139% Gain
Posted 9/22/2004 @ 15.85
Peaked 11/26/2004 @ 37.84

In two months the stock more than doubled as we listed it over 10 times on daily and weekly screens. I did several write ups on this very blog back in November on ELOS as it started to break down and fall into its current base pattern.

ELOS was listed on the daily screen last night but was not near a new 52-week high? I received some questions as to why ELOS made the screen if it wasn’t a buy. On the daily screens, I try to display stocks that can become a buy in the coming days and weeks, I include stocks that may are current buys and stocks that are already trending up. It is up to you, the individual investor to decide what stocks to buy. I can only take you so far before you take the final action.

ELOS is currently building a cup shaped base, the first base since it opened as an IPO in 2004. The fundamentals are excellent with 3-year earnings of 449% and 3-year sales of 302%. The ROE is slightly below par but still good. The PEG ratio sits at 1.17 which is slightly higher than the key 1.0 mark.

This stock would not become a buy until the right side of the base is finished and a downward sloping handle forms on lower volume. I will keep you posted if this stock correctly finished its base. Do not buy prematurely as the majority of stocks that don’t finish their base will continue to fall. A case study will be posted if a handle starts to form and this will be posted BEFORE the possible breakout.

Consider this an ongoing real-time case study.
Piranha

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