Market Gems:Stocks w/Strong Earnings and High Tech. Rank Message Board

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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Adelle who wrote (42530)	5/29/1999 3:05:00 AM
From: Jenna	Read Replies (3) of 120523

Earnings plays for 6/17 BMET.. seldom have I seen BMET below its 52 week high before an earnings report. But 17 days before the report could be a good entry.. It's been an earnings play for 4 quarters and never once did it disappoint. * Mgmt comfortable with consensus estimates of $0.34-$0.36 (for qtr endingMay). * BMET now comes up as the cheapest "healthy" stock. It is line likely to grow low double digits, bottom at 15% or so. Ortho market seems to have picked up recently, and BMET should benefit. Technicals: are good because BMET is showing signs of a reversal a full two weeks before its earnings report. Would be a buy at 41 as the price nears the resistance of 41 1/2. Target would be 45 the 52 week high. Longer term target as position trade 50. BMET had a Stochastic breakout today and it pierced its 10 day moving average. Profile BMET Biomet is a top player in the US orthopedic market and it has plenty of Cash The company has more than $300MM on it balance sheet ($2.60 per share) and generates about $20MM in free cash per quarter. Dane Miller, CEO is one of the four founders of Biomet, and remains at the helm. More than a year ago, the company signed a joint venture with Merck KGaA to align forces in Europe. The JV is accounted for on BMET's income statement. The deal strengthened BMET's implant business in Europe and opened the opportunity for BMET to bring biomaterials to the US at a later date. As of today's close, shares are priced at 22.4x or a nearly 20% discount to the market multiple (based on year 2000 cal numbers...26x or a 4% discount on cal 1999). This is for a top 5 player in the ortho market that is growing in the high teens and generating plenty of cash.) techstocks.com techstocks.com

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