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Byline: Jonah Keri
Barr Laboratories moved sideways from August until early February, then dropped into a correction. The stock took out its 50- and 200-day moving averages en route to a 44% fall. But that was in line with the market's steep drop. The stock has zoomed back, and is now 7% off its high.
Barr has clawed its way back near its previous high, but may not be ready tobreak out yet. The stock has soared higher in 11 of the last 12 days without pausing to consolidate its gains. It may benefit from a downward-sloping handleto shake out the last weak holders before clearing its base.
After a rough late 1999 and early 2000, Barr has started to turn its fundamentals around. In the last four quarters, sales growth has jumped from flat to 13%. Profit growth remains bumpy. It's ranged from flat to 19% in the last five quarters. It was 2% last ...