I first learned about Syneron Medical, the leading global aesthetic device company, when they announced that its Board of Directors has terminated the shareholder rights plan. This contract was meant to ensure that all Syneron shareholders would be treated fairly in the event of any unsolicited takeover of the company. The termination occurred around the 1st of June and caused the stock to dip 1.7%.
Around the same time Seth Jayson posted a light analysis of Syneron’s books concluding that their decreasing revenue was troubling but not consistent enough to be predictive of any future price movement.
Since then, Seth Klarman, the founder and president of a Boston-based private investment partnership, has increased his ELOS position. As a long time follower of his recommendations I decided to take another look. Heuristically speaking, the stock made an outside day to the upside which is a moderate short term buy signal. Also, by examining the SwamiChart below one can clearly see the cyclical monthly down-trending pattern. As such, the Predict indicator has given wonderful buy signals (emerging green) and sell signals (emerging red). And these signals are even more accurate when used in conjunction with the SwingWave indicator which gives indication that a stock could be peaking (orange) or in a valley (blue). Therefore, I expect for selling to continue (despite the outside day) before we see a rebound.
Additional Company Info: Syneron Medical (ELOS), together with its subsidiaries, engages in the research, development, marketing, and sale of aesthetic medical products worldwide. The company develops products based on its proprietary ELOS technology, which combines conducted radiofrequency energy, an electrical energy; and light or laser-based energy, an optical energy.