LifeCell Hits a New High

LifeCell (LIFC) raised its outlook for 2006 and earned $4.1 million, or 12 cents per share, up 91% from $2.1 million, or 7 cents per share, during the same period a year ago. Sales also jumped 54% to $30.7 million from the same period last year. Analysts (or talking heads) expected earnings of 9 cents per share with sales of $29.5 million.

I have been covering LIFC on the MSW index since February 4, 2006 at $22.13 with a breakout point of $24. As you can read below, we have been watching the flat base setup above the 200-d moving average over the past two months. Patience paid off once again as the stock broke-out today; up over 16% on volume six times the 50-day average.

Another text book breakout during the current earnings season! The MSW Index is on fire in 2006. The general market analysis will be provided tonight since I was excited over the breakout of LIFC.

The history of my coverage on the MSW Index is located below:

4/22/06
LIFC – 23.17, A 4.75% gain this week as the stock moved up on higher volume than the previous week but stayed below average. The ideal entry and buy signal is still a strong move above $24. Rating: Hold

4/15/06
LIFC – 22.12, Now a 14 week sideways flat base with the breakout on a move above $24 and a breakdown on a move below $20 (and the 200-d m.a. Rating: Hold

4/8/06
LIFC – 21.79, I consider this a 13 week sideways flat base with the breakout on a move above $24 and a breakdown on a move below $20 (and the 200-d m.a. Rating: Hold

4/1/06
LIFC – 22.55, I said it was a trend buy last week as it produced a return of 6.27% if you bought while it walked along the 200-d m.a. Still in buy territory with the next important move above $24.05. Rating: Hold – buy

3/25/06
LIFC – 21.22, Walking along the 200-d m.a. (this is a stock that can be bought now as a trend-buy using the moving average). Rating: Can enter now at moving average (also building irregular base). Be careful with the medical stocks I have been screening lately!!!

3/18/06
LIFC – 21.45, Walking along the 200-d m.a. (this is a stock that can be bought now as a trend-buy using the moving average). Rating: Can enter now at moving average (also building irregular base).

3/11/06
LIFC – 21.30, Down 4% for the week with a 4% recovery on Friday on volume near average. Support was received above the 200-d m.a. this week with a close on Friday slightly above the 50-d m.a. Rating: Building a base

3/5/06
LIFC – 22.32, A nice 5.28% gain this week on volume that was above average but below last week’s tally. A double top breakout buy occurs with a move above $24. Rating: Building a base

2/25/06
LIFC – 21.20, Down slightly this week but still trading above the 50-d m.a. with the recent up-trend intact. Rating: Building a base

2/18/06
LIFC – 21.29, A 3.10% move higher with the pattern still V-shaped base and a suggested buy above $24 on the P&F chart. Rating: Building a base

2/11/06
LIFC – 20.65, The stock never gave a buy signal and is in a V-shaped base with a suggested buy above $24 on the P&F chart. Rating: Building a base with a target of $40 in 2006

2/4/06
LIFC – 22.13, The stock makes the MSW Index as it gained 7.95% on the largest daily volume in months. Its chart pattern can be considered a cup shape but the P&F suggest a buy above $24. Rating: Building a base with a target of $40 in 2006

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