Thermogenesis

KOOL

Company. "Thermogenesis Corp. designs, manufactures and distributes micro-manufacturing systems consisting of compact robotic devices or automated devices, and companion sterile single-use disposables that our customers use to produce products sourced from single units of blood. These biological products may include hematopoietic stem cells for bone marrow rescue transplants and blood-derived proteins to assist surgeons in arresting bleeding or gluing tissues." (company website)

Buy. Thermogenesis emerged in a screen for stocks making a bullish breakout with big volume. KOOL peaked early in 2004 and only clearly broke the downtrend in September. Since then it has recovered two of the previous peaks (see sidebar).

The 50-day moving average finally crossed the 200-day moving average last week. There is still a healthy flow of money into the stock (CMF), and daily volumes have been increasing recently.

Until the end of 2003, KOOL had only been over $5 three times: very briefly in 1991, 1993, and 1996. Essentially, it has been moving sidewise for over a decade. I'm hoping this is the breakthrough.

Sell. I decided to sell KOOL when I saw that it gapped up to open today and then retreated. The previous three times in this chart that it did this were followed by price declines.

Looking at the 1-year chart (see sidebar), there's nothing that signals a reversal. If the retreat is just as short-term correction, as I think it will be, then I will buy back in when KOOL starts to go back up again.