VIVO (Meridian Bioscience Inc)

Meridian reported earnings this week adn the market has seemed to accept the numbers well. The company makes diagnostic kits for various medical tests. Although flue season has gotten off to a bit of a weak start, other products have picked up the slack allowing the company to beat expectations and guide higher.

I am impressed by the diversification of products as well as the geographic spread. The company seems to have insulated itself from many of the business risks prevelent in this industry. As this is the case, the company should trade at a higher multiple due to its inherent stability and forward visibility.

Technically, the stock broke out of a relatively well formed base on strong volume today. I picked up 8,500 shares just before the close as I completed my research on the name. I was impressed that Bear Stearns (Shelley Bergman in particular) were able to get the trade done quickly and efficiently.

I'm anxious to see how the stock follows through and if the market gets a bit choppy it will be very informative to see how the stock weathers volatility.

Feb 23, 2007

The stock has backed off significantly after breaking out. I became a bit uncomfortable with it due to overall market conditions as we have seen signs of distribution and not much extreme buying pressure as we hit new highs. Also it is concerning when the market advances but a stock does not follow the trend at least to some degeree. So this week I turned out my position at a slight loss in the interest of lowering the overall volatility in my portfolio.