Air Methods (NASDAQ: AIRM), which provides aeromedical emergency services and systems in the US, is a recent buy from technician Leo Fasciocco.

In his The Ticker Tape Digest, which focuses on stocks breaking out of basing patterns, he suggests, "AIRM is a turnaround stock that is acting strong now; with strong profits coming this year, we see good prospects for a breakout to the upside."

"AIRM, with annual revenues of $500 million, operates a fleet of aircraft, consisting of helicopters and airplanes. It serves hospitals in 26 states under contracts ranging from one to 10 years.

"The company transports persons requiring medical care from either the scene of an accident or general care hospitals to highly skilled trauma centers or tertiary care centers. AIRM also has a products division that makes and installs medical interiors.

"The stock was a highflyer climbing from 6 back in 2005 to a peak of 59 in late 2007. It then went into a down trend during the bear market.

"AIRM now has turned up and is acting well. Technically, the stock's daily chart shows the setup of a five-week base with upside resistance at $30.13.

"This year, analysts predict a 55% jump in AIRM's net to $2.20 a share from $1.42 a year ago. The stock sells with a price-earnings ratio of just 13 based on this year's projected net. Looking out to 2010, the Street is forecasting a 13% gain in net to $2.48 a share from the anticipated $2.20 this year.

"Nine funds with a 4-star rating hold the stock. The largest fund holder is Jennison Small Company Fund with a 4.3% stake. The 4-star fund has held its position steady.

"The largest buyer lately was 4-star rated Turner Emerging Growth Investor Fund which purchased 230,000 shares. AIRM has only 12 million shares outstanding.

"In our opinion, the stock is AIRM's stock is ideally set up for a breakout. We suggest a stop buy at 30.20 to catch the breakout.

"We are targeting the stock for a move to 38 after a breakout. A protective stop buy can be placed near 28 after a breakout. Aggressive investors can take a partial stake now in anticipation of a breakout."