Biolase Technology, Inc. (NASDAQ:BLTI) – Expansion Plans Spur Breakout

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BLTI - Google Finance" href="http://www.google.com/finance?q=BLTI">Biolase Technology, Inc. BLTI is a medical technology company that designs, manufactures and markets dental, cosmetic and surgical lasers and related products. The company is a leader in the dental laser technology industry.

At the beginning of this week, the company issued the following press release, which announced the opening of offices in China and India. In the press release the following commentary by the Chairman and CEO,  Federico Pignatelli, was included:

Federico Pignatelli, Chairman and CEO, said, “China and India are large and vibrant emerging markets in Asia. These markets are not just huge markets, but thriving with growth and are now mature economies ready for adopting advanced dentistry and within that, laser dentistry. The first BIOLASE clinical education event in India was oversubscribed by more than 150 dentists. In our experience, doctors in China and India are high tech prone but much more likely to purchase high technology dental equipment from companies with a local presence for direct sales and support, together with the Company's support for clinical education and service in their market.”

Pignatelli added, “We are also on track with our expansion plans in Latin America with an experienced manager on board since the first quarter of this year. We are currently evaluating and adding dealers and assessing various locations with the goal of establishing, in the months to come, the same level of operations as recently completed in China and India.”

At the time of the announcement being released, there wasn't much of a reaction from the market. The above chart actually shows the stock price falling. One could possibly attribute the lack of reaction to the general sell-off in the overall market.

Good news is often ignored when people are too busy panicking about another collapse in the market. The mood in the market did begin to change over the past two days, and yesterday we saw some green for the first time in a while as the sellers became exhausted.

Over the past two days there has also been buying in Biolase stock. That seems to suggest that the good news is now being appraised. Yesterday a resistance level was broken at $5.50 and the stock went on to rally by 10% to close at $5.86.

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