Stock to Sell #1 – Bio-Reference Laboratories (BRLI)
Bio-Reference Laboratories (NASDAQ:BRLI) provides clinical laboratory testing services for the detection and treatment of diseases, primarily in the greater New York metropolitan area.
In one year, the stock rose from $12 to above $30 as a result of improving revenues and earnings. But a recent “whistle blower” lawsuit, which alleges wrongful termination and billing practices, has cast a cloud over the company’s future.
Early in April, the stock broke down from a bearish triangle through support at $25. It recently rebounded to $25, but had a bearish reversal day on May 1. If BRLI fails to rise above its 50-day moving average soon, look for another leg down with a target of $20 or lower.